India's Akasa Air reduces flights as pilots leave, warns of a possible shutdown: Report
Akasa Air
The abrupt resignations of several of the pilots at Indian low-cost airline Akasa Air have forced the firm to temporarily reduce its flight schedule. This has led to a legal conflict, and the airline has threatened to shut down if there are any more resignations.
Flights were disrupted because a number of pilots "abandoned their duties" and left without giving the required contractual notice period, but the airline is still on track to make investments in expanding its operations and acquiring more aircraft, CEO Vinay Dube wrote in an email to staff on Tuesday.
According to a source with direct knowledge of the proceedings, Dube's email was sent on the same day the airline's attorney warned a Delhi court that Akasa was in "crisis" and would shut down as a result of the sudden resignations.
According to the source, Akasa informed the court that it had to cancel 600 flights in August and that if the resignations continue; it may have to cancel up to 700 more in September.
"We have chosen to fly less and give up market share ... these are only short-term constraints," Reuters quoted him as saying. He also mentioned that the airline had "strong finances" and was positive about its future.
To enforce the notice period, Akasa has taken the pilots, many of whom have joined rival Air India Express, to court and filed a lawsuit against the aviation authority.
According to the aviation regulation, the notice term varies depending on the rank of the pilot and spans from 6 to 12 months.
In a statement, Akasa stated that “all our actions are aimed at creating a durable and reliable airline for the long run.”
Akasa Air’s distress call comes at a moment of extreme polarisation in India's aviation sector, where IndiGo, the largest airline in the nation, and Tata-owned Air India dominate roughly two-thirds of the market, while SpiceJet struggles to raise money and Go Air struggles to emerge from bankruptcy.
Akasa, which was established in 2022 by Dube and former IndiGo president Aditya Ghosh, had its market share decline to 4.2 per cent in August from 5.2 per cent a month earlier, according to official data.
In order to expand its international flying plans, Akasa, which has 72 Boeing planes on order, bought four more 737 MAX aircraft in June. Before the end of the year, it is expected to announce a fresh three-digit aircraft order, according to Dube.
According to Dube, Akasa received approval from India's civil aviation ministry last week to launch foreign flights. The government is currently addressing the airline's request for traffic rights, following which the company can decide on its initial destinations.
"Akasa is a well-run airline with strong finances and a solid plan," Reuters quoted him as saying.
(With inputs from Reuters)
WATCH WION LIVE HERE