'Not Going To Shut Down': Akasa Air CEO Clarifies Amid Pilot Resignations

Akasa Air told the Delhi High Court that it is in a "state of crisis" following the "sudden and abrupt" resignation of over 40 pilots without serving the mandatory notice period.

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Akasa Air, India's newest airline, within a year of starting its commercial operations, is facing a "state of crisis". However, amid mass pilot resignations, the airline has received the green signal to start international flight operations. As per the airline, the brand will start commercial operations in the Middle East region, which caters a large number of flyers to and from India. On the other hand, Vinay Dube, clarified media reports stating that the airline is not going to shut down. In fact, the airline is offering hefty bonuses to new pilots for joining the airline. 

"I urge you not to be alarmed or distracted by media headlines, especially those that are speculative and claim that the airline will shut down. We are never more confident about our future and continue to invest prudently, with longer-term financial success in focus," Akasa Air Founder and CEO Vinay Dube told the staff on Wednesday.

Dube also asserted that shortage of pilots is an issue that the airline industry has faced for decades and said that it has a ten-year plan that covers pilot recruitment, training and career upgrades. "In fact, as of today we have enough pilots at various phases of their training to fly over 30 aircraft," he said.

Legal Action Against Pilots

On Tuesday, the airline told the Delhi High Court that it is in a "state of crisis" following the "sudden and abrupt" resignation of over 40 pilots who left the airline without serving the mandatory notice period. SNV Aviation Private Limited, which flies under the brand name Akasa Air, has sought direction to the DGCA to "take coercive action against pilots who fail to comply with the mandatory notice period requirements, in terms of the Civil Aviation Requirement (CAR)...".

The high court has fixed the airline's plea for hearing on Friday. The high court also sought to know from the Directorate General of Civil Aviation (DGCA), represented by advocate Anjana Gosain, as to what action it takes in case flights have to be cancelled due to pilots' resignation. On Wednesday, Dube emphasised that Akasa Air is a well-run airline with strong finances and a solid plan, as much for growth as it is for contingencies.

In its plea, the airline said its officials met DGCA representatives several times to explain their difficulties but failed to receive any response or assurance from the authorities after which it gave a representation to the Minister of Civil Aviation. The petition said the DGCA's inaction in the face of the crisis is at odds with its statutory duty to act in public interest.

According to Dube, when a small set of pilots abandoned their duties and left without serving their mandatory contractual notice period, it forced a disruption of flights between July and September, necessitating last-minute cancellations. In the last thirty days, the airline rationalised its network and that it chose to fly less and give up market share in the short term.

In a statement, Akasa Air said it has approached the Bombay High Court to obtain a stay against a small set of pilots who abruptly resigned and abandoned their positions without serving their mandatory six-month notice period.

"Given the acts of these pilots resulted in immense passenger inconvenience, Akasa Air approached the DGCA and agreed with them to request the Hon'ble High Court of Delhi to pass orders for implementing the interim order in relation to the Civil Aviation Requirement (CAR) dated 16.08.2017 governing compliance of mandatory contract notice period requirements by pilots," it added.

International Operations

The airline, which started flying in August last year and currently has a fleet of 20 aircraft, has received approval from the civil aviation ministry for starting international flights and the first overseas flight is likely by year-end. The airline is targeting destinations within the range of a Boeing 737 MAX from India in South Asia, Southeast Asia and the Middle East, Dube said in a statement.

“The Ministry of Civil Aviation has recognised the strength of Akasa Air’s operations and we have been designated as an International Scheduled Operator. This new designation will allow us to fly internationally, enabling us to take one step closer to our dream of launching international operations before the end of this year.

We are now working with all relevant authorities on our request for traffic rights and will soon be able to announce the international destination we will fly to. We are targeting destinations within the range of a 737 MAX from India in South Asia, Southeast Asia and the Middle East. We are also on track to announce a 3-digit aircraft order by the end of this year to serve the growing travel demand," said Dube.