Some of India’s proposed domestic airlines are facing some financial issues according to media reports, with staff going unpaid and leaving their positions for other operators.
Business Insider India reports that ex-employees have said that Premier Airways, a company proposing low-cost regional services, has not paid staff in a few months and is still waiting for an air operator’s permit. Proposed airline Flyeasy has put off paying employees for two months, according to the report, and is also waiting for a permit.
The Economic Times reports that the airlines are without planes and losing staff members to other operators, such as SpiceJet and IndiGo. The issue for the new airlines, according to the Times, is delays in getting investment.
However, a Premier executive told the Times that the company is heading towards its launch, noting that there have been temporary hurdles, but they will not stop the company. A Flyeasy executive said the company isn’t facing financial issues.
There are concerns from critics who question the Indian government granting approvals for so many new airlines. Sixteen approvals were given between 2009 and 2014, but several of those have since lapsed, reports the Times.
But regardless of specific airlines success, the domestic market is set to expand, reports Business Insider India. India is expected to be in the top five air domestic travel markets in the world by 2034, according to the International Air Transport Association.