NEW DELHI: Akasa Air chief executive officer Vinay Dube has told employees of the airline that they are not shutting down following the sudden resignation of 43 pilots, which has forced it to cancel about 24 flights every day.
Dubey, however, said they are ready to give up market share in the short term as they are here for the long run. Akasa’s share in domestic air traffic fell from 5.2% in July to 4.2% in August 2023, according to official data.
Just 13 months in operations, Akasa recently faced a major blow after dozens of its pilots decided to leave the airline without serving the mandatory notice period. A number of these pilots, who are said to have joined Tata Group-run Air India Express, said Akasa management violated contracts by altering the salary structure.
In an internal email to employees, Dube confirmed that they faced disruption in its operations but urged employees not to be alarmed or distracted by media headlines, especially those that are speculative and claim that the airline will shut down.
This assurance by Dube comes after flyers and employees of Go First were left stranded following the grounding of Go First in May this year. An aviation industry expert said Akasa management should fill up its pilot shortage on an emergency basis as it faces competition from two giants (IndiGo and Air India) who would take no time in snatching traffic from the new airline.
“This is a major setback for Akasa and it may force the airline to pause its aggressive expansion plans,” the expert said requesting anonymity. Meanwhile, Akasa said they have been designated as an International scheduled operator by the aviation ministry. This would allow them to start international operations before the end of this year.
Dube also told employees that legal action has been initiated against the pilots who left without serving their mandatory contractual notice period. Akasa has already approached the Delhi High Court for about `22 crore as compensation from the pilots for the loss of revenue on account of the grounding and cancellation of flights. The airline is also facing a large number of complaints from flyers which is impacting its reputation.
Airline’s domestic air traffic declines significantly
Akasa Air chief executive officer Vinay Dube said that they are ready to give up market share in the short term as they are here for the long run. The company’s share in the domestic air traffic declined from 5.2% in July to 4.2% in August 2023, according to official data