The Tata Group-owned Vistara Airlines is facing a crisis and has resorted to cancelling flights, leaving passengers stranded and fuelling worries about the carrier's operational reliability.
On April 1, the domestic carrier said that it would temporarily reduce the number of scheduled flights to "ensure adequate connectivity across its network", saying it was facing issues of "crew unavailability".
According to reports, the cascade of cancellations has prompted the Union Civil Aviation Ministry to seek a detailed report from Vistara.
The Directorate General of Civil Aviation (DGCA) has also asked the airline to submit daily information and details on the flights that are being cancelled and delayed.
Moneycontrol explains what factors contributed to Vistara finding itself ensnared in this crisis.
What caused the cancellations?While the Tata-backed airline flagged unavailability of staff, reports suggest that the shortage of pilots, purportedly protesting the terms of a new contract following the airline's merger with Air India, is at the heart of the crisis.
Vistara pilots are reported to have sought sick leave en masse, a move prompted by the revised salary structure that the airline was trying to implement ahead of its merger with Air India.
What is the new contract and why are pilots unhappy?Ahead of its merger with Air India, Vistara handed out a revised contract to its pilots with changes in the salary structure, according to reports. Under the revised framework, Vistara pilots are slated to receive a fixed salary for 40 hours of flying, as compared to the previous arrangement of 70 hours.
On Friday, the carrier issued an ultimatum to its pilots to accept the new pay structure, which could result in a pay cut of more than 50 percent for some, according to The Hindu.
The pilots were warned of losing a one-time payout, their place in the sequence for upgrade, and of their elimination from the merged entity in case they failed to accept the new contract, said reports. After receiving the email, pilots called in sick causing about 50 flight cancellations on April 1. According to reports, the airline might cancel another 70 flights.
What is the airline doing to contain the crisis?The Tata-backed airline said it would resume operations of regular capacity "very soon", adding that its teams are working to stabilise the situation.
"We have decided to temporarily reduce the number of flights we operate, to ensure adequate connectivity across our network. We have also deployed larger aircraft like our B787-9 Dreamliner and A321neo on select domestic routes to combine flights or accommodate more number of [SIC] customers, wherever possible," the company said in a statement.
The airline is offering alternative flight options or refunds to affected customers, as applicable.
What is the DGCA saying?The DGCA has asked the airline to submit information daily, with details on the flights that are being cancelled and delayed. The airline has also been asked to ensure that the relevant provisions of Civil Aviation Requirements (CAR) Section-3, Series M, Part-IV on “facilities to be provided to passengers by airlines due to denied boarding, cancellation of flights and delays in flights” are complied with. These facilities include advance information, a refund option, and compensation (if applicable) etc. to passengers.
Additionally, the DGCA said officials are monitoring the situation to ensure compliance with the CAR to minimise passenger inconvenience.
Could there be more cancellations?While the company has not shared specifics, industry sources said there may be more cancellations if the crew shortage persists. Meanwhile, aviation minister Jyotiraditya Scindia has pulled up the airline, seeking a response on what is being done to address the situation. Vistara has also been asked to provide details on the impact of flight operations, according to CNBC-TV18.
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