Corporate May 11, 2012
Pilots of Kingfisher Airlines have called of their strike after the management assured them that January salaries will be paid by 15 May, airlines sources told PTI today.
Around 12 Kingfisher flights were today cancelled after the pilots reported sick in protest against non-payment of salaries. Ten flights from Delhi and two from Mumbai were cancelled after pilots did not report for work.
On Thursday, Mallya in a letter to his employees assured his employees that the overdue January salary payments have begun. He, however, also warned that strict action will be taken against the workers who have gone on a strike, and said that he will not allow a "small group of misguided employees to derail and jeopardise operations" and urged employees to ensure that the revised schedule is maintained.
Kingfisher Airlines has been facing financial troubles for almost a year now. The airline, which never made a profit since its inception in May 2005, reported a net loss of Rs 444.26 crore in the December quarter.
It suffered a loss of Rs 1,027 crore in 2010-11 and has a debt of Rs 7,057.08 crore.
Due to paucity of funds, the air carrier now operates only 110 flights a day with a fleet of 20 aircraft as against 400 flights per day last year with 66 planes.
The airline had a 6.4 per cent market share in March, and was ranked below the budget carrier GoAir, which cornered 7.5 per cent market share in the same period.
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