Kingfisher will pay 3 months’ back wages by Diwali

Ashwini Phadnis Updated - March 12, 2018 at 02:26 PM.

All employees to ‘report for duty immediately’

Kingfisher Airlines' CEO Sanjay Aggarwal has said recapitalisation of the airline will happen by March.

In an attempt to woo back employees who have been on a strike since October 1, Kingfisher Airlines has agreed to pay back wages for three months by Diwali. In addition, a fourth month’s back wage will be paid by end-December. The airline employees have not been paid wages for the last seven months.

In a statement, the airline has said that “all employees have agreed to resume work and report for duty immediately.” It adds that “we will now finalise and present our resumption plan to the Directorate-General of Civil Aviation and hope to get their concurrence soon.”

But the airline could still face some problems in restarting. Sources in Airports Authority of India say that they will be sending an official letter seeking payment of about Rs 300 crore which the airline owes before allowing it to restart.

At the moment, there is no firm date for the airline starting services and with how many aircraft it will take to the skies. Before restarting, the airline will also have to convince the DGCA to revoke the suspension of its operating licence.

Speaking to the media after separate meetings with pilots and engineers, airline’s Chief Executive Officer Sanjay Aggarwal said, “Pilots and engineers have both agreed to join work.”

The proposal will see the airline releasing March salary in 24 hours, April salary by October 31, May salary before Diwali while the June salary will be released by the last week of December.

By late evening, employees confirmed that they had started receiving their March wages.

> ashwini.phadnis@thehindu.co.in

Published on October 25, 2012 10:39