scorecardKFA Employees May Join Vistara, Indigo
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KFA Employees May Join Vistara, Indigo

Employees May Join Vistara, Indigo
StrategyStrategy1 min read

Former employees of the defunct carrier Kingfisher Airlines are applying for jobs at soon-to-be launched Vistara airline, a 51:49 joint venture between Tata Goup and Singapore Airlines.

“The counsel for Kingfisher Airline has told us that since the airline has not been operating, no revenue has been generated and hence they cannot pay us. It is good news for us that Vistara is coming up because most of us have joined the new airline,” said a former employee of the beleaguered carrier.

Apart from Tata-Singapore Airlines's Vistara, many have also joined Indigo. “Both these airlines have Airbus 320 and since KFA had a fleet of Airbus 320, therefore, these suit us,” added the employee.

It’s worth noting that Kingfisher airline has not paid its employees since 2012 and made promises of disbursal of salaries on several occasions. A section of the distressed employees have also submitted a plea in the Karnataka High Court for releasing the funds deposited with the court as a security. The employees had requested the Court to allow the management to access Rs 220 crore from the security (Rs 250 crore) deposited with the court, which came from UBHL stake sale to Diageo.

Earlier this year, the employees also wrote to the labour Commission for the disbursal of the salary. Vijay Mallya was summoned by the chief labour commissioner to discuss the issue of unpaid salaries of the employees.

Tata Group and Singapore Airline’s Vistara was scheduled to launch this month, however, aviation regulator Directorate General of Civil Aviation, has not yet issued the Scheduled Operator Permit to the airline. The airline took the delivery of its first aircraft Airbus-320 last month.