Akasa Air, the Indian airline that recently faced challenges due to pilot resignations, has received partial relief from the Delhi and Mumbai High Courts regarding these cases.
Delhi High Court’s Decision:
The Delhi High Court clarified that the Directorate General of Civil Aviation (DGCA) is not restrained from taking action against pilots in breach of employment agreements with airlines. However, it did not issue specific orders regarding Akasa Air’s pilots. The court noted that while Akasa Air did not seek penal action against the 43 pilots who breached their contracts, it sought clarity and regulatory action against them. The court emphasized that the Civil Aviation Requirement (CAR) of 2017 and previous orders were clear on pilot termination. It rejected DGCA’s contention that it cannot act against pilots for breach of agreements.
The Delhi High Court also disposed of the Akasa pilots’ case but decided to hear whether DGCA has jurisdiction to intervene in cases where Akasa’s pilots resign without serving their notice period. This matter is scheduled to be heard again in October.
Mumbai High Court’s Decision:
The Bombay High Court ruled in favor of Akasa Air, allowing the airline to proceed with its legal action against pilots who had not served their notice periods after resigning. The court stated that acceptance of a resignation is complete when it comes to the knowledge of the company. The high court also agreed to hear the matter to consider interim reliefs to Akasa on October 4. The airline is seeking ₹21.6 crore in compensation, including ₹14.28 crore for damage to its reputation due to flight disruptions and grounding, ₹6.96 crore for operational profit loss, and ₹36 lakh for pilots’ training agreements.
Akasa Air has faced challenges due to a wave of pilot resignations, with the airline starting operations only in August 2022 with 20 aircraft. The airline first sought DGCA intervention on August 3, citing mass resignations and invoking Rule 39A(2) of Aircraft Rule (1937). It also reported the situation to the Bureau of Civil Aviation Security, alleging that the pilots did not return their aerodrome entry permits and requested that the pilots be placed on a “Stop-List” for violating AEP guidelines.
These legal developments are significant for Akasa Air as they address the complexities surrounding pilot resignations and their impact on airline operations and contractual obligations.
