Kingfisher row: employees move court seeking company's closure
Beleaguered Kingfisher Airlines today faced fresh trouble with its employees deciding to move court seeking a formal closure of the company if it did not spell out future plans giving a time-line for clearing their salary dues of eight months.india Updated: Jan 10, 2013 00:32 IST
Beleaguered Kingfisher Airlines on Wednesday faced fresh trouble with its employees deciding to move court to get their salary dues of eight months. Some of the employees have also hinted at seeking a formal closure of the company if it did not spell out future plans giving a time-line for clearing dues.
Kingfisher has not operated a single flight since October 1 and its flying licence had expired on December 31.
The airline, promoted by billionaire Vijay Mallya, who owns a Formula One team and an IPL team, is heavily indebted to lessors, suppliers, lenders, airline partners, employees, oil companies, airports and the tax department. It had promised three months salary (March-May) before Diwali to employees but only a handful of them got their salary for May.
"We demand that the management should share the revival plan with us. We also want it to spell out a payment schedule for our salary dues. If we don't find their explanation satisfactory, we will file a winding up petition in the court under the Companies Act," a member of the KFA's Maintenance Engineers' Association, who did not wish to be named, said.
KFA did not offer comments for the story.
Sources said the employees had also approached the aviation regulator and informed it about their plans. They also plan to seek the intervention of the President and the Prime Minister.
KFA's accumulated losses at the end of the financial year 2012 were more than 50% of its net worth, the company has said in its annual report for 2011-12.