Mumbai: A majority of India's new and aspirant airlines appear to be facing major cash and operational issues, delaying salaries, putting off aircraft induction, grounding planes and cancelling flights, leading to questions about whether they can cope in a sector that demands patience to deal with bureaucratic delays and the ability to overcome lobbying by incumbents.
Chennai-based Premier Airways is waiting for an air operator's permit and hasn't paid salaries for the past three months, said said four people, including ex-employees.
Regional airline Flyeasy, based in Bengaluru, is also waiting for a permit. The company has delayed salaries for two months and lost senior executives such as head of sales and marketing Mani Rayaprolu.
Three other south-based airlines that are operating flights have their own set of problems, with either aircraft being grounded or mass flight cancellations. Many of Premier's 150 employees are said to have quit and joined airlines such as SpiceJet and IndiGo. Earlier this year, the airline agreed to purchase 40 A320 Neos from Airbus but hasn't been able to get Reserve Bank of India approval to import the planes.
"I don't think they have the money. I won't be surprised if the project is dead," said a top executive at a supplier, who didn't want to be identified.
12/10/15 Anirban Chowdhury/Economic Times
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Chennai-based Premier Airways is waiting for an air operator's permit and hasn't paid salaries for the past three months, said said four people, including ex-employees.
Regional airline Flyeasy, based in Bengaluru, is also waiting for a permit. The company has delayed salaries for two months and lost senior executives such as head of sales and marketing Mani Rayaprolu.
Three other south-based airlines that are operating flights have their own set of problems, with either aircraft being grounded or mass flight cancellations. Many of Premier's 150 employees are said to have quit and joined airlines such as SpiceJet and IndiGo. Earlier this year, the airline agreed to purchase 40 A320 Neos from Airbus but hasn't been able to get Reserve Bank of India approval to import the planes.
"I don't think they have the money. I won't be surprised if the project is dead," said a top executive at a supplier, who didn't want to be identified.
12/10/15 Anirban Chowdhury/Economic Times
