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The Vijay Mallya-owned airline offered to pay one month's salary soon and promised to expedite payment of the remaining six months as soon as the company gets recapitalised. However, striking employees rejected this offer
Mumbai/New Delhi: The crisis in debt-ridden Kingfisher Airlines worsened on Wednesday as reconciliatory talks between its management and striking engineers and pilots over payment of seven-month salary backlog failed with the protestors rejecting the offer of part payment and vowing to continue their agitation, reports PTI.
With no end to the deadlock, a question mark hung over the airline's plans to resume operations from Friday, after a four-day partial lockout and complete suspension of all operations since Monday night.
"Our strike will continue as management has failed to give any commitment on payment of salary," a representative of striking Kingfisher engineers and pilots, Capt Vikrant Patkar, told reporters after a brief meeting in Mumbai.
On its part, the management offered to pay one month's salary soon and "expedite the payment of the remaining six months as soon as the company gets recapitalised," an airline official said on condition of anonymity.
But this offer was rejected by the employees. "There is no money and they can't give any commitment also. The engineers and pilots will continue with their agitation," Patkar said.
He said the management "offered us one month salary and that too 10-15 days later. We are not going to work unless we are paid for seven months. So we have rejected their offer."
Top Kingfisher officials had promised aviation regulator DGCA that they would hold meetings with various sections of the staff in an attempt to end the strike and the process began today.
Airline CEO Sanjay Agarwal and UB Group's Chief Financial Officer Ravi Nedungadi attended the meetings with the commercial staff as well as engineers and pilots in Mumbai.
They are expected to meet the employees in Delhi tomorrow.
Earlier in the day, Civil Aviation Minister Ajit Singh said the Directorate General of Civil Aviation (DGCA) would submit an interim report on the situation facing Kingfisher, including the safety issue as aircraft engineers were on strike.
Kingfisher has been saddled with a huge loss of Rs8,000 crore and a debt burden of another over Rs7,000 crore, a large part of which has not serviced since January.
Several of its aircraft have been either taken away by its lessors or grounded by the Airports Authority of India for non-payment of dues during the past few months.
A close below 5695 on the Nifty may lead to a short decline