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Corporate Jan 14, 2013

KFA row: Pilots to send legal notice as Mallya’s letter disappoints

By Firstbiz Staff

Mumbai/ New Delhi:Kingfisher Airlines pilots and engineers are set to send legal notice to the airline after the airline's employees association is dissatisfied with chairman Vijay Mallya's letter, reported CNBC TV-18.

Employees said that the company offered no concrete plan on clearing salary dues and the legal notices would seek a response on this from the management.

Earlier last week, employees were deciding to move court seeking a formal closure of the company if it did not spell out future plans giving a time-line for clearing their salary dues of eight months.

The employees are also learnt to have moved the DGCA, informing the aviation regulator of their plans which also include seeking the intervention of the President and the Prime Minister, airline sources said.

The decision was taken following a meeting of the Kingfisher Airlines Maintenance Engineers Association. AFP

"We demand that the management should share the revival plan with us. We also want it to spell out a payment schedule for our salary dues. If we don't find their explanation satisfactory, we will file a winding up petition in the court under section 433 of the Companies Act," the sources told PTI.

The decision was taken following a meeting of the Kingfisher Airlines Maintenance Engineers Association, which lasted for two hours in New Delhi. The staffers have also decided to write to the Kingfisher management asking them to sell assets of the airline and clear salary dues running into several months, they said.

There was no immediate response from the airlines management to the employees' decision. Kingfisher, whose flying license (Scheduled Operator's Permit) expired on December 31 last year, suffered another blow with the Mumbai International Airport Limited (MIAL) giving away six of 11 of flying slots, with sources saying most of them have gone to Indigo, official sources said.

Its bankers, which have been discussing recovery measures during the past few months, have also decided to take legal action against the airline company for its failure to repay over Rs 7,000 crore debt despite repeated reminders.

Kingfisher is burdened with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of that has not been serviced since January.

With inputs from PTI

by Firstbiz Staff

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