June 22, 2012 / 19:00 IST
Kingfisher Airlines has not yet paid salaries to staff since February say CNBC-TV18 quoting NewsWire 18. Due to the ongoing financial crunch, the airline has not been able to pay staff salaries on time and due to this, 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 the aviation regulator, the Directorate General of Civil Aviation.
It may be recalled that a section of KFA staff including engineers and pilots was even mulling the option of 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 KFA 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.
KFA has a debt burden of Rs 7,057.08 crore and the financial crunch has hit its operations with airline ranking lowest in market share at around 7%.
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The airline has completely withdrawn from its overseas operations and is operating only 20% of its domestic flight schedule.
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