After CEO, 30 GoAir pilots quit

NEW DELHI: Wadia Group’s GoAir seems to be passing through a turbulent phase. Within weeks of GoAir CEO Giorgio De Roni quitting, 30 pilots of the low cost carrier (LCC) have now put in their papers. With a total strength of 200 pilots in the 19-aircraft- airline, this exodus means a 15% reduction in GoAir’s pilot strength.

While the airline’s spokesman declined to comment on this issue, sources say the pilots quit due to “training issues and possibly not getting adequate flying hours”. The airline industry’s pay structure for a pilot has two parts — a relatively low fixed component and flying allowances that form a lion’s share of the package. Flying less could mean getting a truncated pay cheque.

GoAir has been passing through a rough patch for the past few months. In March-end, CEO Giorgio De Roni — who had turned around the LCC and made it profitable — quit. While the airline said Roni quit due to “health reasons”, industry sources spoke of ‘discord’ within the airline. After Roni’s departure, GoAir promoter and MD Jeh Wadia is running the airline with Tim Jordan, a recently-hired CCO (chief commercial officer) from Australia,.

Last December, the Airports Authority of India (AAI) had warned GoAir to bring its dues within the bank guarantee amount or be ready to be put on cash-and-carry. The airline brought the dues within bank guarantee limit after this warning.

The recent troubles in GoAir have surprised the industry as the LCC claims to be a profitable one — the only Indian carrier to be in black apart from IndiGo. GoAir had made a profit of Rs 100 crore in FY 2012-13. The subsequent fiscal (2013-14) was also profitable but the figure was lower due to fall in rupee and sharp rise in aviation turbine fuel (ATF) or jet fuel price. It is expecting a record profit in FY 2014-15.

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Source:Timesofindia