Due to the ongoing financial crunch, Vijay-Mallya owned Kingfisher Airlines has not yet paid salaries to its staff since February, Newswire reported today. Around 300 employees have quit the organisation since April.
The airline is currently flying 12 aircraft instead of 20 which it had earlier committed to t Directorate General of Civil Aviation. Earlier a section of the airline staff including engineers and pilots even considered moving the Labour Court to expedite settlement of their dues.
Two months ago, a section of its employees, including pilots and engineers, had served an ultimatum to the airline management to clear their dues by April 20 or face a strike.
The crisis was averted at the last minute after chairman Vijay Mallya wrote to them assuring payments of salaries within a week in a phased manner. However, the issue has re-surfaced with KFA not being able to honour its commitment.
The airline’s stock closed 1 percent lower at Rs 13.67 on the Bombay Stock Exchange today.