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Bombay HC says Akasa Air can take legal action against 5 pilots for their abrupt exit

Bombay HC says Akasa Air can take legal action against 5 pilots for their abrupt exit

The low-cost carrier had moved the Bombay HC against a few pilots who had abruptly quit their duties without serving the mandatory notice period as required by their contracts.

Business Today Desk
Business Today Desk
  • Updated Sep 27, 2023 2:51 PM IST
Bombay HC says Akasa Air can take legal action against 5 pilots for their abrupt exitAkasa's market share slipped from 5.2 per cent in July to 4.2 per cent in August this year following cancellations of flights, DGCA data showed.

The Bombay High Court on Wednesday said that low-cost airline Akasa Air can proceed with its suit in Mumbai seeking contractual damages from five pilots who abruptly exited the aviation company. 

The low-cost carrier had moved the Bombay HC against a few pilots who had abruptly quit their duties without serving the mandatory notice period as required by their contracts. The carrier's pilots are required to serve a notice period of six months (for first officers) or one year (for captains).

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On September 25, the HC had reserved its order in the pilots' plea that challenged the maintainability of lawsuits filed against them in the court by Akasa Air.

Pilots have argued that a suit in the Bombay HC is not maintainable since the contracts were neither performed nor executed in Mumbai.

Earlier, Akasa Air said it is in a state of crisis and might have to shut down, following the resignations of 43 pilots. The carrier told the Delhi High Court that the sudden resignation of the pilots forced the carrier to cancel 24 flights per day in September. 

Akasa's market share slipped from 5.2 per cent in July to 4.2 per cent in August this year following cancellations of flights, DGCA data showed. Currently, the airline has a fleet of 20 aircraft.

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Akasa Air even accused DGCA of causing it great harm. The airline said the regulator caused it "significant financial and operational hardship" by not intervening to stop pilots – 43 of them – from abruptly quitting. 

According to a Reuters report, Akasa Air in a 265-page legal filing made on September 14 accused DGCA of “unwilling to take any action” resulting in the "significant financial and operational hardship" as well as "reputational loss".

Responding to the case, the DGCA clarified that it does not have any power or delegated authority to interfere in any employment contract and decisions in respect of airport operators, airline operators or any other stakeholders.

"The DGCA cannot interfere in the employment agreement between airline and the pilot which itself contains the mechanism of termination of pilots...," the DGCA said while urging the court to dismiss the airline's petition with costs.

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Regarding the airline's claim of cancellation of about 600 flights since June owing to resignations of pilots, the regulator categorically denied that the company has provided any documents or reasons to it for the same.

"The data/records are maintained by respondent no. 1(DGCA) for cancellation of flights along with the cited reasons which are primarily due to operational, commercial, technical or on account of weather, but no such information regarding the cancelled flights was communicated to respondent no. 1 as averred by the petitioner," it said.

It added that as per the details submitted by Akasa Air, 1.17 percent of flights were cancelled in August, 2023.

The carrier later explained it had approached the Delhi High Court seeking interpretation and clarification with respect to mandatory notice period requirements for pilots and that the move was not against the DGCA or the civil aviation ministry.

''We want to clarify that it is not a matter against the DGCA or the Ministry of Civil Aviation (MoCA) but a plea to the courts to urgently interpret and clarify the interim order issued by the very same court on the very same matter in 2018, relating to mandatory notice period requirements by the pilots,'' it said.

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Since the beginning of the proceedings, the airline said its assertion in court has been that this is a non-adversarial claim and is only in the nature of seeking clarifications and instructions to enforce an existing interim order and the civil aviation regulation.

Meanwhile, Akasa Air CEO Vinay Dube said that the low-cost carrier is opting to fly less and give up market share in the short term to ensure it runs a reliable operation after some pilots have quit the airline. 

In an email to the employees, Dube said: "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." 

Also read: 'Don’t have power or authority’: DGCA says it can’t interfere in Akasa Air’s pilot dispute

Also read: Akasa Air pilot crisis: Airline accuses DGCA of inaction, causing it ‘financial, operational hardship

Published on: Sep 27, 2023 2:02 PM IST
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