Delhi HC: DGCA can address pilots’ notice period violations in the future

New Delhi: In its order on Wednesday, the Delhi High Court provided clarification on Akasa Air's plea, asserting that the Directorate General of Civil Aviation (DGCA) is not completely barred from taking action against pilots who have violated their employment agreements with the airline. However, the court did not grant this plea in the specific case of Akasa Air.

The court explained that Akasa, in its specific case, was not seeking action against the 43 pilots who had already resigned. Instead, the airline was primarily seeking regulatory guidance and potential action against those pilots who had resigned without adhering to their contractual agreements.

The court noted that Civil Aviation Requirement (CAR) 2017 and previous 2018 and 2019 orders of this court on upholding the CAR are very clear about the termination of the pilots and rejects the contention made by DGCA that it cannot act against the pilots in the case of breach of the agreement.

The court has resolved the current case brought forth by Akasa Air. However, the matter regarding the jurisdiction of the DGCA in cases involving interference when pilots resign without fulfilling their notice periods will resume in court and is set for a renewed hearing in October.

Akasa Air moved this plea seeking clarity on mandatory notice periods for pilot resignations. The airline had implored the DGCA to intervene and take action against resigning pilots, citing breaches of employment agreements.

Akasa Air claimed that it was forced to cancel numerous flights in September due to abrupt pilot resignations, asserting that these resignations violated the terms of the agreements between pilots and the airline. However, the DGCA opposed Akasa's plea, emphasising that it could not interfere in the contractual relationships between pilots and airlines.

According to the DGCA, the existing agreements between Akasa Air and its pilots already contain provisions for pilot terminations. In situations where the airline does not have a sufficient number of pilots to operate its flights, the DGCA recommended that Akasa adjust its flight schedule accordingly. Notably, Akasa Air failed to provide supporting documentation related to the pilot resignations and flight cancellations during the proceedings.

Additionally, Akasa's plea sought clarity on interim orders issued in 2018 and 2019 regarding notice periods for pilot resignations. These orders, issued by the Delhi High Court, directed the DGCA to refrain from taking coercive actions under the Civil Aviation Requirement (CAR) 2017 as long as pilots adhered to their agreements with the airline. CAR 2017 stipulates a six-month notice period for first officers (co-pilots) and a one-year notice period for captains (pilots in command).

The DGCA noted that both notice periods are presently under legal scrutiny, with the status of CAR 2017 considered as executive instructions according to a Supreme Court ruling.

Simultaneously, the Bombay High Court ruled in favour of Akasa Air on Wednesday, allowing the airline to proceed with its legal action against pilots who resigned without serving notice. Akasa is seeking ₹21.6 crore in compensation, comprising ₹14.28 crore for damages to its reputation due to flight disruptions, rescheduling, and grounding, ₹6.96 crore for lost operational profits, and ₹36 lakh related to pilots' training agreements.

The ongoing wave of pilot resignations has posed challenges for Akasa Air, India's youngest airline, which commenced operations in August 2022 with a fleet of 20 aircraft. The airline first sought DGCA intervention on August 3, invoking Rule 39A(2) of the Aircraft Rule (1937) to address the mass resignations. Simultaneously, Akasa reported the situation to the Bureau of Civil Aviation Security (BCAS), alleging that pilots had not returned their Aerodrome Entry Permits (AEP) and requesting that these pilots be placed on the 'Stop-List' for violating AEP guidelines.

On August 18, Akasa Air escalated its efforts by appealing to Civil Aviation Minister Jyotiraditya Scindia for intervention, by which time 30 pilots had already resigned. However, the airline received limited responses from regulators and the ministry, prompting its recourse to both the Delhi and Bombay courts for resolution.

Since its inception in August 2022, Akasa Air had secured a 5% market share in the domestic aviation sector by July, surpassing other low-cost carriers like SpiceJet. However, the recent crisis has seen its market share drop to 4.2% in August from 5.2% in July.

In August, Akasa applied to the DGCA for permission to operate international routes, and while it was deemed eligible for international operations, final approval hinged on the availability of bilateral air tariff rights with foreign countries, potentially positioning Akasa as one of the youngest airlines to gain international flight permissions.