Mumbai: Vijay Mallya-led Kingfisher Airlines
is understood to have put close to 100 pilots, mostly
trainees, on the chopping block on grounds of huge losses and
capacity reduction.
These pilots have completed their probation and all
endorsements, but the company has decided not to renew their
service contracts in view of the huge losses and capacity
reduction, sources told PTI here today.
Their contracts would not be renewed as and when they
expire and hence the job cuts would be carried out in a phased
manner, they said.
The pilots, who are planned to be phased out, belong to
both Kingfisher and the erstwhile Air Deccan, the sources
said, adding that they were grounded last year after the
merger.
When contacted, a Kingfisher spokesperson denied
"sacking" of any pilot. Such measures are "however inevitable
due to the market conditions," a company official said.
Incidentally, the salaries of these pilots were cut by
nearly 80 per cent earlier this year, the sources said.
Kingfisher has reported a net loss of Rs 418.77 crore
during the second quarter of this fiscal. Its income from
operations also declined by 13.6 per cent during the quarter
compared to the same period last year.
Bureau Report
BPCL, Kingfisher reach settlement
Bharat Petroleum Corporation Ltd
(BPCL) and Kingfisher Airlines have reached an out-of-court
settlement to resolve their dispute over jet fuel outstanding
amount of Rs 314 crores, the Bombay High Court was informed
today.
Both parties told the court that they have arrived at a
settlement following which a petition was filed by BPCL
seeking arbitration in the matter.
According to the mutual understanding between the
litigants, the outstanding amount will be paid by Kingfisher
within a year in monthly instalments along with a down
payment.
However, the down payment and instalment amount was not
immediately known.
The state-run oil firm had petitioned the high court to
appoint an arbitrator to resolve the issue, after Vijay
Mallaya-owned private airline failed to clear its dues of Rs
314 crore, including Rs 290 crore as principal amount, to
BPCL.
Kingfisher had on October 8 offered the oil company a
payment of Rs 10 crore every month, as a settlement
arrangement, which was turned down by BPCL.
While arguing the arbitration petition, earlier filed by
BPCL against Kingfisher, the oil PSU said the offer of Rs 10
crore was not acceptable and asked the airline to come out
with a substantial offer.
Bureau Report
First Published: Wednesday, November 04, 2009, 23:28