Air Deccan Ceases Operations, Employees Asked to go on ‘Sabbatical Without Pay’

New Delhi: The first Indian aviation company to succumb to the coronavirus crisis, Air Deccan on Sunday announced that it is ceasing its operations until further notice. Issuing a notification, the airliner said that all its employees are being put on sabbatical leave without any pay. Also Read – UDAN 3 auction: Govt not to open financial bids of Air Deccan and Air Odisha for now

The development comes at a time when almost all the airlines – domestic and international – have halted their operations due to the COVID-19 pandemic outbreak. Also Read – New owner of Air Deccan, Air Odisha plans to invest $10 mln in the embattled carriers

Writing an email to his employees, Air Deccan CEO Arun Kumar Singh said, “In view of the recent global and domestic issues and subsequent directive by the Indian regulator (to suspend all commercial passenger flights till April 14), Air Deccan has no choice but to cease its operations until further notice.” Also Read – Air Deccan threatens to move base to Guj on slots, parking issues

He further stated in the email that all existing employees of Air Deccan (permanent, temporary and contractual) are being put on sabbatical without pay with immediate effect.

As per updates, the airliner has a fleet of four 18-seater Beechcraft aircraft to fly on regional routes in western India, focusing on Gujarat.

“Next week, the management will hold meetings with department heads for continuity of certain key personnel (with continuity of employment terms) to ensure that when the right time arrives, the airline can be restarted with nominal efforts,” Singh further wrote in his email.

He also added that when Air Deccan recommences the operations under conducive circumstances, all existing employees will be offered first right of refusal for their current positions.

Following the coronavirus outbreak, the Central government had on March 24 announced a 21-day lockdown from March 25 to curb the pandemic. Subsequently, all domestic and international commercial passenger flights were suspended for this time period.

The airliner, however, said that the cargo flights, offshore helicopter operations, medical evacuation flights and special flights permitted by Indian aviation regulator DGCA are operating during this lockdown.

At a time when other airlines in the country have introduced various cost cutting steps such as laying off pilots, leave without pay and salary cuts, Air Deccan is the first casualty in the country of the coronavirus pandemic.