Akasa Air vs Pilots 2.0: What’s Fueling The Latest Showdown, Fresh 84 Resignations?

India's one of the youngest airlines, Akasa Air, launched its domestic operations in August 2022 with a promising start in what is considered a challenging market for newcomers. In September 2023, within a year, the airline achieved a massive milestone, receiving clearance from the civil aviation ministry to commence international operations with its fleet of 20 aircraft. Currently, Akasa Air has a fleet of 26 planes and flies to 27 destinations, including five overseas cities.

A promising launch of this kind should have made Akasa's journey in the last two years a cakewalk but instead, it was far from smooth. Akasa Air has faced recurring challenges with the core of any airline's functioning, the cockpit, becoming the epicenter of its crises.

The pilot crisis has again put Akasa Air in turbulence as a section of the airline's pilots flagged concerns over alleged training and safety issues, PTI reported. The pilots have also sought intervention from the civil aviation ministry through a letter, as per the report.

This follows reports of Wipro founder Azim Premji and Manipal Group chief Ranjan Pai acquiring a significant minority stake in Akasa Air. As per The Economic Times, This transaction will be a part of the budget carrier's $130-140 million fundraising initiative.

The budget airline has reported a its loss of Rs 1,670.06 crore in the FY24 even as the airline's total income jumped to Rs 3,144.38 crore during the same period.

Allegations Against Akasa Air

In the letter dated December 11, the pilots accused the airline's trainers of favouritism and also claimed that pilots with limited experience or with a history of safety violations are being promoted while eligible pilots are being failed.

"The primary cause of these issues lies in the airline's management, notably under Captain Floyd Gracious and his associates. He is indulging in divisive politics and mismanagement, which continue to erode trust and morale within the industry," the letter read as per reports.

According to the letter, as many as 84 pilots and many others have resigned from the airline on one-day notice as its management led by Gracious created a demoralising and hostile training environment through their unprofessional conduct.

Reportedly, the letter also highlighted that the airline had failed 216 pilots in simulator and aircraft evaluations,  but none of these failures involved Gracious' close associates. All affected individuals belong to other airlines.

"This raises serious concerns about the fairness and objectivity of the airline’s assessment procedures," it said.

It further accused the airline of violating DGCA’s fair, transparent, and unbiased assessment standards. It said that the airline promoted and placed individuals with bare minimum or zero STOL (Short Take-Off and Landing) experience in critical roles such as Captains, LTCs, TRIs, and DEs, despite a history of multiple BA (Breath Analyzer) positive incidents, accidents, and safety violations, as per reports. 

Request for Action

Following the allegations, the Akasa Air pilots urged the minister of civil aviation Kinjarapu Rammohan Naidu to start an immediate independent probe into the matter. They also requested a comprehensive review of DGCA-designated examiners and instructors to ensure unbiased and professional conduct.

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The letter further sought strict enforcement of DGCA CAR provisions to protect trainees and ensure fair assessments.

They also emphasised for a safety audit to address concerns over unfit pilots holding critical positions.

Notably, the aviation regulator Directorate General of Civil Aviation (DGCA) imposed a fine of Rs 30 lakh on Akasa Air for certain lapses in the training of crew in October.

Akasa's Response

However, the airline has refuted these allegations leveled at them by the pilots. They called these accusations "baseless and untrue" in a statement.

"We categorically deny these allegations as baseless and untrue. Nor do they represent the views of Akasa pilots," an airline spokesperson said on Saturday.

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"Our commitment to employee centricity is at the heart of everything we do. Our monthly employee survey reveals that pilots, among all employee groups, have consistently reported the highest levels of job satisfaction, highlighting the effectiveness of our supportive culture," it said.

The airline also added that 324 pilots have joined the airline since October 2023, and during this period, it has recorded an annualised attrition of less than 1 per cent for this employee group.

"This dedication is further evidenced by the minimal number of pilots seeking opportunities outside of Akasa Air throughout 2024," it added.

Pilot vs Akasha: A History

This setback is not the first for Akasa Air, which has faced challenges in the past related to its pilots. 

In 2023, Akasa Air experienced a significant pilot exodus between July and September, with 43 pilots leaving the airline, many without completing their mandatory notice periods. This was a worrying number for an airline with 20 planes in its fleet. The pilots have reportedly joined Akasa Air’s rival airlines. The disruption forced the airline to cancel nearly 600 flights, far exceeding its initial estimate of 382 cancellations for August alone.

In September, the airline moved Bombay High Court and then Delhi High Court seeking directions to DGCA and MoCA to take coercive action against pilots and poaching. As part of the civil suit, Akasa was seeking compensation from the resigned pilots for the revenue drop and reputational harm caused by flight cancellations, delays and rescheduling.

The airline told Delhi HC that they were in a state of crisis and might have to shut down, following the resignations of 43 pilots. The sudden resignation of the pilots has forced the carrier to cancel 24 flights per day in September.

However, Akasa Air, later in a statement, clarified that they are prepared for "unforeseen circumstances and have contingency management strategies". They also said that they have a strong financial profile.

The airline had moved the Bombay HC to prevent their pilots who had resigned from taking up jobs at any other competing companies. But to its shock, most of the pilots had already taken jobs at its rival companies.