Will Kingfisher Airlines Shut down

in Current-affair

With issues erupting one after the other, it has now become a major question that will Kingfisher Airlines shut down recently?? Starting from the issue of withdrawing all Kingfisher flights from Kolkata Airport, it is for the first time that the Kingfisher Airlines management has threatened to shut down the business, at a meeting with a group of pilots in Mumbai. The pilots from Kingfisher Airlines refused to operate flights if they are not being paid their salaries, and in response to such protests, Kingfisher Airlines’ CEO Sanjay Aggarwal made the statement of shutting down the Airlines if the pilots do not cooperate.

However, despite of all threats of shut down, a major portion of pilots from Mumbai called for sick on 3rdMarch 2012, but flight operations for the curtailed ones were not interrupted due to this. To add more to the worries of the Airline’s, the service tax department has frozen 40 of its bank accounts for the fourth time now in the last four months. The airline owes about Rs 40 crores to the service tax department, and failed to meet the payment deadline of February 29, 2012. Despite of all these problems, the CEO put up a more arrogant front during the meeting with Mumbai pilots, and didn’t even commit to clear the salaries that have been due for 3 months now. Thus upfront behavior has surprised the pilots significantly, especially because the airline Chairman Vijay Mallya has previously sent a letter to the employees, reporting that their December salaries will be paid within a week.

On 2nd March 2012, Civil Aviation Minister Ajit Singh told the media that if Directorate General of Civil Aviation feels that Kingfisher Airline’s incompetence to clear its employees’ salaries can pose a threat to the safety or if the Airports Authority of India refuses to issue any additional credit to this stressed out carrier, then its operating license will be suspended temporarily. The airline will be able to restart its operation only when all these issues are sorted out. This verdict from Ajit Singh has sparked a concern in several fields as to will Kingfisher Airlines shut down. The present financial condition of the airline does not seem encouraging to sort all issues of the employee salaries and service tax department. So, it is a concern now that whether Airline CEO has actually given a hint of shutting down in the meeting.

However, the issue regarding will Kingfisher Airlines shut down, as represented by the CEO, has been by the company off late.



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pooja rajput has 38 articles online

Pooja Rajput  is a well known author who writes articles for Newspaper website that covers Hindi News , Hindi Jokes , State News in Hindi and Entertainment News etc. visit Jagran.com for more details.

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Will Kingfisher Airlines Shut down

This article was published on 2012/04/14
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