Kingfisher restores flying allowance on fears of exodus
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Kingfisher restores flying allowance on fears of exodus
Moneycontrol Bureau
After much deliberation, Kingfisher Airlines (KFA) has restored the original salary structure of its pilots. Last month, the airline suddenly informed pilots that their flying hour allowance would be reduced from around 55 hours to 40. This step angered pilots who threatened to either strike or tender mass resignations.
KFA has over 600 pilots who had to take a hit of Rs one lakh each month on an average.
In response to a query, the company spokesperson told moneycontrol.com: “We follow best practices when it comes to salaries. There is nothing of sort happening at KFA company.”
Sample this: A commander draws a basic salary of Rs 4 lakh and gest Rs 2,500 for an hour of flying. A co-pilot or first officer has around Rs 3 lakh as a fixed component and around Rs 2,000 for an hour of flying.
“Flying allowance forms a major chunk of our salaries. Even a slightest change in the salary structure could dent our salaries," says a commander with KFA.
Desperate times call for desperate measures
The airline, which ran up losses of Rs 1,027 crore last year, paid out Rs 676 crore as salaries in FY11. Despite its best efforts, Kingfisher Airlines could only reduce its wage bill 2% year-on-year.
It has made unsuccessful attempts in the past to change pay structures of pilots, but had to backtrack in the face of widespread opposition.
KFA has never reported profits ever in its six years of existence but is keen to turnaround the airline. Escalating fuel cost is not under its control; hence the focus remains on trimming salaries of employees.
The company is finding it difficult to raise money because of its battered financials.
An angered commander says, though pilots did not make a noise about it, last year also nearly 50 pilots exited the airline to join Gulf carriers with much better pay structures
Meanwhile, KFA stock which has taken a beating on the Bombay Stock Exchange for quite a few months was trading at Rs 31.90, down 4% at 14 hours.
Kingfisher restores flying allowance on fears of exodus - Moneycontrol.com -
After much deliberation, Kingfisher Airlines (KFA) has restored the original salary structure of its pilots. Last month, the airline suddenly informed pilots that their flying hour allowance would be reduced from around 55 hours to 40. This step angered pilots who threatened to either strike or tender mass resignations.
KFA has over 600 pilots who had to take a hit of Rs one lakh each month on an average.
In response to a query, the company spokesperson told moneycontrol.com: “We follow best practices when it comes to salaries. There is nothing of sort happening at KFA company.”
Sample this: A commander draws a basic salary of Rs 4 lakh and gest Rs 2,500 for an hour of flying. A co-pilot or first officer has around Rs 3 lakh as a fixed component and around Rs 2,000 for an hour of flying.
“Flying allowance forms a major chunk of our salaries. Even a slightest change in the salary structure could dent our salaries," says a commander with KFA.
Desperate times call for desperate measures
The airline, which ran up losses of Rs 1,027 crore last year, paid out Rs 676 crore as salaries in FY11. Despite its best efforts, Kingfisher Airlines could only reduce its wage bill 2% year-on-year.
It has made unsuccessful attempts in the past to change pay structures of pilots, but had to backtrack in the face of widespread opposition.
KFA has never reported profits ever in its six years of existence but is keen to turnaround the airline. Escalating fuel cost is not under its control; hence the focus remains on trimming salaries of employees.
The company is finding it difficult to raise money because of its battered financials.
An angered commander says, though pilots did not make a noise about it, last year also nearly 50 pilots exited the airline to join Gulf carriers with much better pay structures
Meanwhile, KFA stock which has taken a beating on the Bombay Stock Exchange for quite a few months was trading at Rs 31.90, down 4% at 14 hours.
Kingfisher restores flying allowance on fears of exodus - Moneycontrol.com -
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Over 150 left this 5 star sinking airlines in 2009..Over 100 last year left....and now more to go...Hmmm Airlines with 5 star rating can't even pay their 4 class staff( loaders a mere 4000 Rs per month ,who some how go on strike every month...lol )...AME's working for free ( Most are fresh out of school graduates...working for experience by paying to HR guys
.....)....and ground staff will be happy if they get salary on time.....
Lets just bring Praful Patel for KFA.....
KFA & Malya -
Can not pay fee's for lease planes...
Can not pay for spares.....
Can not pay for fuel.....
Can not pay their employees.....
Last time Malya went for GDR issue to raise money from foreign market,he was told to get out & shunted from merchant banker's office based from NYC cuz of heavy debt and padded accounts books......lol
Sooner this 5 star rated brothel airliner get closed....better will be life of people working in indian aviation....in & out .
.....)....and ground staff will be happy if they get salary on time.....Lets just bring Praful Patel for KFA.....
KFA & Malya -
Can not pay fee's for lease planes...
Can not pay for spares.....
Can not pay for fuel.....
Can not pay their employees.....
Last time Malya went for GDR issue to raise money from foreign market,he was told to get out & shunted from merchant banker's office based from NYC cuz of heavy debt and padded accounts books......lol
Sooner this 5 star rated brothel airliner get closed....better will be life of people working in indian aviation....in & out .
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Would love to know the logic of KFA, about 2 mths ago a ATR was hit by a truck or bus and had damage to the wing in Kolkata... they started to repairs it went on for about a week, then the tables turned and now that aircraft is missing props, an engine , a whole lot of the leading edges of the wings and tail and numerous other parts are being removed on a daily basis.. tags are placed all over the airframe showing components missing. Seems KFA has no money for parts to stay in the air , just like the 2004 Model A320 that sits in Chennai minus lots of parts, I dont think that plane will ever fly again. I have only ever seen airlines in bankruptcy butcher their planes like this to stay in the air.
