The directorate general of civil aviation (DGCA) is going to issue a letter to the ailing Kingfisher Airlines asking it to stop taking bookings till it replies to the show-cause notice that was sent to it by the regulator on Friday.
The airline had last week extended the lockout till October 12 as its negotiations with the striking employees failed. Later, on Friday, the DGCA slapped a show-cause notice on the airline seeking an explanation on why its license should not be cancelled. The airline, however, continued taking bookings from October 13 onwards.
A senior DGCA official said, ?The carrier should not take bookings unless it replies to the notice. We are going to write to them.?
The carrier in an official statement had said that ?it would reply to the notice in 15 days?. ?We will send a detailed response to the DGCA well in time. We will also submit a comprehensive plan for restoration of services after negotiations with our employees,? it had said.
The airline also runs the danger of losing flight slots on routes across the country. According to DGCA sources, the carrier has to come up with a concrete reply mentioning its flying plans, slot usage and immediate measures to resolve the issues with employees.
Meanwhile, the airline management, which met a section of the pilots on Monday again, is trying to convince the striking pilots by offering one month?s salary, with a promise that the other dues would be cleared gradually.
The employees, however, are yet to agree to that offer. ?The banks have allowed them to use the R60 crore that was frozen by them. With that money, at least two months? salaries can be easily settled. But they are just offering a month?s salary,? said a pilot.
The share price of Kingfisher fell 4.91% at R12.60 on the Bombay Stock Exchange on Monday.