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Kingfisher crisis: Mallya to resolve salary issue today

CNN-IBN
Mar 15, 2012 at 06:35am IST

New Delhi: Kingfisher Airlines Chairman Vijay Mallya is expected to meet pilots in Delhi on Thursday in an effort to resolve the salary payments issue.

The airline is also planning to curtail its international operations. On Wednesday, Civil Aviation Minister Ajit Singh reiterated that the government will not bail out Kingfisher. Aviation watchdog DGCA has said that Kingfisher Airlines is still flouting rules and may face action.

Earlier, Kingfisher issued a statement claiming that salaries have been delayed as several accounts of the company have been frozen by the tax authorities.

KFA: Mallya to resolve salary payments issue today

On Wednesday, Civil Aviation Minister Ajit Singh reiterated that the government will not bail out Kingfisher.

"The flight loads have reduced because of our limited distribution ability caused by IATA suspension. We are therefore combining some of our flights. Also, some of the flights are being cancelled as a result of employee agitation on account of delayed salaries. This situation has arisen as a consequence of our bank accounts having been frozen by the tax authorities. We are making all possible efforts to remedy this temporary situation," said the statement.

"We will operate approximately 80 per cent of our planned schedule. We expect to return to our full schedule shortly. Those guests whose flights are affected are being notified. They are either being accommodated on other airlines or offered a full refund," the airline added.

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