Half of Kingfisher's staff may have to go

New Delhi

Kingfisher Airlines has been eyeing layoffs to save costs for some time. Now, a report by Zee News claims that half of the company’s employees may be asked to leave. “In order to resolve its deepening debt crisis, the Kingfisher Airlines might lay off 50 percent of its current employees, sources claimed on Monday.

“Kingfisher is expected to make an official announcement regarding its decision to slash 50 percent of its current workforce later in the evening,” the Zee News report said.

The airline has close to 6,000 people on its rolls and a majority of pilots have already left to join rivals such as IndiGo and Go Air because of mounting salary arrears and uncertainty surrounding the airline over the last many months.

The possibility of large scale layoffs comes amid a fresh warning by Civil Aviation Minister Ajit Singh today that the airline must pay dues to vendors if its wants to continue operations. This warning came hours before the Directorate General of Civil Aviation (DGCA) is widely expected to submit a crucial report on the cash-strapped private carrier to Singh.

Speaking to television reporters, Singh said DGCA will call Vijay Mallya again to ensure that safety and passenger convenience is not being compromised. He said as long as the airline adheres to its schedules and flying norms, it can continue to fly.

On Sunday, the cash-strapped airline had agreed to pay only up to Rs 10 crore of its Rs 76-crore service tax dues this fiscal.