Indian Airlines has once again been pushed to the brink with 14 senior pilots, including three commanders, planning to quit the airline in the next two days. The development may force the airline to ground a part of its fleet seriously jeopardising its operations. All the pilots have been reportedly offered jobs by Jet Airways at salaries which, according to one pilot, was five times more than their present pay at Indian Airlines. Six pilots are learnt to have tendered their resignations so far. The Minister for Civil Aviation, Mr. Gulam Nabi Azad, has been informed about the likely exit of 14 pilots. The Minister is learnt to have taken a serious view of the situation. The Director General of Civil Aviation (DGCA) has issued a warning to Jet Air that it should not recruit pilots who have not obtained no-objection certificate from their previous employers.

Peerless assurance to RBI on banker status

Stung by the RBI’s recent letter of July 30 wherein the bank had taken a serious note of its shortfall in statutory investment in the Government-approved securities, the Peerless General Finance and Investment Co. has given a categorical assurance to the RBI authorities here that it has already started negotiations with Union Bank of India for designated banker status. Once the banker is appointed in the case of an RNBC, such an arrangement can effectively check excessive mobility of investments, especially if these take place in contravention of the provisions of the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987. This status differs from that of a trustee-ship arrangement. In the case of the latter, the relationship is merely that of a bank servicing a high-profile client, but not keeping tabs on the end-use of the funds.

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