Akasa Air hits turbulence with 43 pilot resignations in a month and a court battle

Despite enjoying nearly a year of successful operations, Akasa Air, a new low-cost airline, seems to be facing some problems.

With 43 pilots resigning abruptly, Akasa Air is currently grappling with a pilot shortage, a situation that threatens its ability to operate flights efficiently.

They were growing rapidly, and in just a year, they acquired 20 airplanes, necessary for international flights.

However, the pilot shortage has created significant challenges in maintaining a sufficient number of pilots to operate their aircraft effectively.

What happened

• As many as 43 pilots resigned from Akasa Air in recent weeks.
• On September 16, Akasa Air announced that it has filed a lawsuit in the Bombay High Court against a "small group of pilots" who left the airline without providing the required notice before quitting.
• The notice period for pilots at Akasa Air varies, lasting either 6 or 12 months, depending on their rank, in accordance with regulations set by the aviation authority.
• They have asked the pilots to pay Rs 18 lakh for breaking their contract and Rs 21 crores as damages for each pilot.
• They claim that these pilots left without notice, causing numerous flight cancellations.
• The sudden departure of these pilots resulted in the airline canceling 24 flights every day in September.

This has not only incurred financial losses for the airline but also damaged its reputation.

What Akasa is saying

• The airline's CEO, Vinay Dube, explained that they are suing these pilots because they did not provide the required notice before leaving.

• On September 19, they brought the issue to the Delhi High Court, expressing their concern that if the situation does not improve, they could face the possibility of shutting down.

• They also mentioned that in August, the airline had to cancel 600 flights, and if more pilots continue to leave, they might have to cancel up to 700 more in September.

• However, Dube reassured the employees in an email that they are still planning to expand their operations and acquire more planes.

• These pilots have apparently joined other airline

• Besides wanting these pilots not to join rival airlines, Akasa Air is seeking substantial compensation from each pilot, claiming that the pilots' departure resulted in financial losses and damage to their reputation.

• Akasa Air has also sought assistance from aviation authorities like the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation.

What the pilots are saying

The pilots have a different perspective.

• They argue that the airline should have sought the court's permission in Mumbai before taking any legal action.\
• A lawyer named Darius Khambata, representing one of the pilots, explained that the agreements were signed outside Mumbai.
• The company sent the agreements to the pilots, who signed and returned them.
• He also argued that the pilots sent their resignations from locations outside Mumbai, so the Mumbai court might not have the jurisdiction to handle this case.

The judge, Justice Modak, scheduled the next hearing for September 25.

Where are the pilots going?

• Most of these pilots have joined Air India Express, which also operates Boeing 737 planes, similar to Akasa Air.

• Since both Air India Express and Akasa Air use similar types of planes, it is easier for their pilots to transition between the two airlines.

• Among the major airlines in India, only Air India Express, Akasa Air, and SpiceJet use Boeing 737 family planes.

• Others like IndiGo, Air India, Vistara, and AIX Connect use Airbus A320 family planes for their single-aisle jets.

Akasa Airline faces market turbulence

In the past month, Akasa Air had a lot more flights canceled because many pilots left the company early. 

• In the past month, Akasa Air has experienced a significant increase in flight cancellations due to the departure of many pilots.

• In July, only a very small percentage of Akasa Air flights were canceled (0.45%), but in August, it increased to 1.17%, according to data from the Directorate General of Civil Aviation (DGCA).

• In August, Akasa Air's share of the airline market, measured by the number of passengers they carried, dropped from 5.2% in July to 4.2%.

• This made them less popular than SpiceJet among domestic airlines.

• Just a couple of months ago, in June and July, Akasa Air was outperforming SpiceJet in terms of market share.

Akasa Air was founded by Vinay Dube and former IndiGo president Aditya Ghosh, with an investment from Rakesh Jhunjhunwala, who owned 46% of the airline.

The airline commenced passenger operations on August 7, 2022, with its inaugural flight from Mumbai to Ahmedabad, utilizing its first Boeing 737 MAX 8 aircraft.