By Aditi Shah and VarunVyas Hebbalalu
NEW DELHI: Indian budget carrier Akasa Air has had to reduce the number of flights in the short term due to many of its pilots quitting unexpectedly. This has resulted in a legal dispute in court, where the company has warned that further resignations may even lead to a shutdown.
A small group of pilots left without completing their mandatory contractual notice period, causing flight disruptions. However, CEO Vinay Dube assured employees in an email on Tuesday that the airline is still planning to expand its operations and order more planes.
Dube’s email came on a day when the airline’s counsel told a Delhi court that Akasa was in a “crisis” and may shut down after the sudden resignations, according to a person familiar with the hearing.
Akasa informed the court that it had already cancelled 600 flights in August and may need to cancel up to 700 more in September if the resignations continue, added the same person.
“We have chosen to fly fewer flights and sacrifice market share… these are only temporary constraints,” said Dube, emphasizing that the airline has strong finances and is confident in its future.
Akasa has taken the pilots, many of whom have joined rival Air India Express, to court and has initiated legal proceedings against the aviation regulator to enforce the notice period.
The notice period ranges from 6 to 12 months, depending on the pilot’s rank, according to the aviation regulator.
“All our actions are aimed at creating a sustainable and dependable airline for the long term,” said Akasa in a statement.
Akasa’s distress call comes at a time of significant competition in India’s aviation industry. IndiGo, the country’s largest carrier, and Tata-owned Air India control nearly two-thirds of the market. Meanwhile, Go Air is struggling to recover from bankruptcy and SpiceJet is facing a funding crisis.
Akasa, founded by Dube and former IndiGo president Aditya Ghosh in 2022, saw its market share drop to 4.2% in August from 5.2% the previous month, according to government data.
The airline, which has ordered 72 Boeing planes, placed an additional order for four more 737 MAX jets in June to further expand its international flying plans. Dube stated that the airline is on track to announce a new aircraft order with three digits before the end of the year.
Dube also mentioned that India’s civil aviation ministry recently approved Akasa to operate international flights and the government is currently working on the airline’s request for traffic rights, after which it can determine its initial destinations.
“Akasa is a well-managed airline with strong finances and a solid plan,” concluded Dube.
(Reporting by Aditi Shah and Varun Vyas, additional reporting by Aditya Kalra; Editing by Louise Heavens, Christian Schmollinger, Kim Coghill and Bernadette Baum)
