Kingfisher's troubles continue to mount. The Vijay Mallya-owned airline received a major setback on Friday, when the Directorate General of Civil Aviation (DGCA) declined to take action against resigning pilots for breach of contract.
The move might trigger an exodus of talent from the troubled airline, which has been struggling to meet its payroll.
In a double blow, DGCA has also threatened that it will examine “all options”, including cancellation of its operating permit, if the airline fails to stick to its revival plan within a given time limit. The airline was asked to submit a detailed revival plan to DGCA. The plan is expected to be filed on Monday.
Kingfisher and Alliance Air were identified after a financial surveillance exercise carried out by DGCA raised serious issues, including some related to safety aspects. This exercise for all airlines except Air India, was completed last month.
The DGCA officials said that the airlines would be given a “reasonable” time frame to complete its turnaround, failing which the regulator will be forced to act. However, they admitted that cancellation of the operating permit would be a “last resort”.
Under the present regulations, DGCA's options include curtailment of operations, allowing operations according to inventory of engines and spare parts and finally cancellation of the operator's permit to fly.
While losing its permit is a distant threat, the ruling on the pilots is expected to have immediate repercussions for Kingfisher. As many as 24 Kingfisher pilots have reportedly resigned in the last one month.
The airline wanted DGCA to proceed against the pilots for breach of contract, for not serving out the stipulated six-month notice period, which the DGCA has turned down.
The Director General of Civil Aviation, Mr E.K. Bharat Bhushan, said, “How can I take action against pilots who have not been paid for months. Terms of appointment of these pilots have been abrogated. So the Civil Aviation Requirements (CAR) does not apply for them.”
CAR, under the heading ‘Flight crew standards', published on October 27, 2009, say that every pilot working in an air transport undertaking shall give a ‘notice period' of at least six months to the employer indicating his intention to leave the job.
“During the notice period, neither the pilot shall refuse to undertake the flight duties assigned to him nor shall the employer deprive the pilot of his legitimate rights and privileges with respect to the assignment of his duties,” the rule stated.
Further, the rules also said that if the airline resorts to reduction in salary/perks or otherwise alters the terms and conditions of the employment to the disadvantage of the employee pilot during the notice period, the pilot will be free to make a request for his release before the expiry of the notice period and the air transport undertaking shall accept his request.
Shishir.s@thehindu.co.in