Akasa Air in a state of crisis after 43 pilots resign; expects to cancel 700 flights

The newly launched Akasa Air is in a state of crisis and might have to shut down, following the resignations of 43 pilots, the airline told Delhi High Court on Tuesday. The sudden resignation of the pilots has forced the carrier to cancel 24 flights per day in September. Akasa Air, later in a statement, added that they are prepared for "unforeseen circumstances and have contingency management strategies". They also said that they have a strong financial profile.

According to a report in Business Standard, since the pilots did not serve their mandatory notice period of 6 months (for first officers) or 1 year (for captains), Akasa Air was forced to cancel scores of flights each day, the airline’s counsel told Justice Manmeet Pritam Singh Arora.

The pilots have reportedly joined Akasa Air’s rival airlines. The report, citing sources, stated that a top executive wrote a letter to a rival group expressing the airline’s concerns over the pilots’ exit and called it unethical.

As it stands, Akasa Air, that operates 120 flights a day, is expecting to cancel 600-700 flights this month alone if the resignations continue. It had cancelled 700 flights in August. The airline has requested the court to empower Directorate General of Civil Aviation (DGCA) to enforce the mandatory notice period rules.

The airline is reportedly seeking to take penal action against the pilots and is seeking around Rs 22 crore as compensation for loss of revenue owing to cancellation and groundings of flights.

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The airline, while acknowledging the shortage of pilots, said in a statement on Wednesday, "We are pleased to note that our disciplined approach has helped us to be well established with a strong financial profile to execute on our ambitious plans. The airline that our team has created has generated cash from its first day of operations as a result of which the initial investment by our investors (including the investment made by Mr. Jhunjhunwala) continues to remain secure in our bank account. As a young airline, we are proud that we are adding to the company reserves even in the first year of our operations. "

Last week the airline had stated that it is seeking legal recourse against the pilots who left without serving their contractual notice period. “We have sought legal remedy only against a small set of pilots who abandoned their duties and left without serving their mandatory contractual notice period. This was not only in violation of their contract but also the country's civil aviation regulation. Not only is this illegal in law but also an unethical and selfish act that disrupted flights in August forcing last minute cancellations that stranded thousands of customers causing significant inconvenience to the travelling public,” an Akasa Air spokesperson had said.

The spokesperson also said, “Fortunately, that is behind us now. Thanks to the hard work of our colleagues. As a young start up, we are proud of what every Akasian has helped us build in the first year of our operations,” further adding that this kind of behaviour is “deeply disrespectful to the hard work of our entire team which shows up to work, everyday with utmost integrity”.

[UPDATE: The copy has been updated to include Akasa Air's statement issued on Wednesday]

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