Oct 9, 2012

Letter - Kingfisher CEO appeals striking, unpaid staff to return

















"From: Aggarwal, Sanjay (CEO Kingfisher Airlines Ltd)
Sent: Tue 10/9/2012 8:25 PM
To: Everyone (All Employees)
Subject: Update

Dear Team Member -

Given the pain that all of you and your families have gone through over the last year due to delay in payment of salaries, we can only tell you in utmost sincerity that this situation pains us immensely too.

We have been working relentlessly to try and rectify this situation, and that too against all odds - IATA suspension causing loss of corporate traffic and customer confidence, revenue authorities freezing our accounts, airports and fuel suppliers putting us on cash and carry, and other creditors pressing for payments.

Unless we can keep our operations going, we will not be able to rectify the situation. We need you to help us to have any chance of getting back to normalcy. DGCA has issued us a show cause notice due to disruptions which resulted in inconvenience to travelling public. Without all of you, without exception, coming back to work, we will have no way forward. We have currently announced suspension of operations until October 12th and sincerely hope that we will able to present a viable plan to DGCA to allow us to resume operations on October 13th.

There are positive developments that give us confidence in our future plans. The revenue authorities have lifted the freeze on some of our accounts that will allow access to some of our bank accounts immediately. The Consortium of Banks are equally anxious to see us resume operations. We are in constant dialogue with our fellow team members who are striking work, to arrive at a viable solution so that we can restore operations to work towards our future.

Also, post the announcement by the Government of India permitting Foreign Direct Investment in domestic airlines by foreign airlines, the dialogue with potential investors has gathered momentum. Even non-strategic investors are showing interest in investing in Kingfisher Airlines, which is a good sign.

During these months, UB Group has continued to support the airline by infusing over Rs. 1,100 crore in the airline in the last six months. We will work relentlessly to get fresh investment into Kingfisher Airlines in the next few months. For that we need your support and your patience. We are aware it is a big ask but no potential investor will put his money in an airline that is not operational; neither will our esteemed guests come back to us unless we commence operations soon. This does not mean we will not remit salaries during these months.

All the recent positive developments for a turnaround will not bear fruit without your further cooperation and support in these most difficult and trying times.

Please believe in yourself and your airline. We have come this far, and we have to still go further.  I earnestly urge you to not to lose hope at this crucial juncture.
With warm regards,

Sanjay Aggarwal "



pic source : http://www.thehindubusinessline.com/multimedia/dynamic/01225/BL03KFA1_1225596g.jpg , mr aggarwal is left in photo with mr hitesh patel, executive vice president, kingfisher at the DGCA meeting last fortnight in new delhi)

4 comments:

  1. Is the CEO getting paid? What about the other key management team members?

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  2. CEO salary works out to be about INR 33 lakhs per month average. Hitesh is at about 28 lakhs. Doubt they are getting anything though.

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  3. Dear Team members,

    if you dont come back to work, I lose 33 lakhs & Hitesh loses 28 lakhs a month. Unless you come back, we wont gt paid. If we dont get paid, we cant help revive the company. Our losses are more than yours and yet we work. boohoohoo!

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  4. Capt. Erasmus B Draggin10 October, 2012

    "What is the difference between Vijay Mallaya and Gopal Kanda? Both represent the people one as MP the other as MLA. Both run unsuccessful and bankrupt airlines, both are personally rich but do not pay their bills, aircraft rentals taxes or salary to their their employees. Both are fond of women and the good life.Both have driven a woman they caused emotional turmoil and mental stress to kill herself. Both consider themselves innocent and great benefactors. One is in Jail and the other at a party abroad
    All men are equal but some are more equal than others.Shame on VJM. Shame on KFA shame on DGCA and double shame on Ajit Singh the Minister protecting Mallaya..... I won't be surprised if there are further tragedies like self immolations unless the Govt acts immediately on KFA and gives relief to the employees.

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