New Delhi/Mumbai: Striking employees of Kingfisher Airlines Sunday said they will meet the management to find a solution to the 20-day strike that has crippled operations and led the Directorate General of Civil Aviation (DGCA) to suspend the carrier’s licence.
Nearly, 6,500 employees of the airline face the possibility of losing their jobs if the airline continues to be in a state of lockout, which has been extended till Oct 23. The average monthly wage bill of the airline is said to be around Rs.21 crore. The employees went on a flash strike Oct 1 demanding payment of their salaries by by Oct 5, which have been pending since March.
They also claimed that non-payment of salaries has affected their morale and built up stress levels that can also affect operational safety.
Key personnel like aircraft maintenance engineers, whose airworthiness clearance is mandatory for any flight to take off, also struck work.
The airline Friday extended till Oct 23 the lockout declared Oct 1 after negotiations with striking employees failed. The airline had the lowest market share in September, which stood at 3.5 percent. The airline has a total debt of Rs.7,000 crore from a consortium of banks.
Bankers are scheduled to hold a meeting Monday to decide on the fate of their exposure to Kingfisher Airlines. If they decide on writing off bad debt owed by the airline, it may have a negative impact on their quarterly performance and will also affect the scrip price in the equities market.
According to a report by the Centre for Asia Pacific Aviation (CAPA), Kingfisher Airlines may have to shut down operations if $600 million is not infused in it in the next two months. (IANS)