This archive report was first published on 12 July 2020.
Broke Pilots Threaten to Bring Down Small Airline ¶
Published on July 12, 2020
A dispute between DAC Aviation, a small airline based at Wilson Airport, and its pilots is threatening to bring down the carrier. The pilots are demanding the company be liquidated due to unpaid salary arrears totaling Sh15.28 million.
The pilots, who have been struggling to make ends meet, have been forced to endure months without pay and have had to fight off creditors. They have made a statutory demand, in-line with the Insolvency Act, requiring the company to pay the outstanding amount.
According to correspondence between the airline and its pilots, the pilots have been working under stressful conditions, with some even having to choose between eating lunch or supper. They have also been struggling to pay their families' debts and have had to rely on cash payments for medical expenses.
One of the pilots, John Kavulu, wrote to the Director of Operations, Ramesh Peshavaria, stating that couples were fighting over the phone due to financial hardships. He also noted that the pilots had decided not to operate until they were paid their full salaries.
Another pilot, Stevenson Kibara, quit his employment on March 3, citing stress and fatigue due to the delayed payments. He had not been paid arrears for 10 months amounting to $24,200 and had not received full salary for the last three months amounting to $6,000.
The airline has cited a revenue loss of $2.5 million from the European Commission for Humanitarian Aid (ECHO) and $800,000 from WFP due to the pilots' actions. The airline's director, Fredrick Opot, accused the pilots of abandoning their work stations and leaving clients stranded, resulting in contract cancellation and revenue loss.
The airline has disputed the amount of money the pilots are seeking, claiming it has been exaggerated and should be decided by the Employment and Labour Court.
