Tata Group-owned Air India has revised the salary structure for its pilots and cabin crew in a move aimed at avoiding the flight cancellations that were seen earlier this month. To be sure, airline staff salaries have risen across companies as competition rises. Know whether this will translate into a smooth flying experience for travellers.
Air India hikes salaries to curb staff absences. (Photo credit: X/ Air India)
New Delhi: After cruising through its fourth-quarter performance, India’s largest airline Indigo as well as the combined Tata Group-run airlines – Air India, Air India Express, and Vistara have hiked salaries for pilots and crew. The decision comes amid a chaotic sick-leave trend that sent Air India Express’s flight schedules into rough weather. The big question is whether higher salaries put an end to flight cancellations and delays owing to crew absence.
IndiGo market share and pay hikes
Indigo commands the lion’s share of the sky at 60.5 per cent; followed by the Tata-owned Air India group at 26.2 per cent. Together – it’s a duopoly with 86.7 per cent share. Indigo airlines, which registered a 106 per cent growth in net profits, is rewarding its employees with an increased pay and attractive benefits. Pilots and the cabin crew are due to receive a bonus of 5 per cent of their salaries. This comes in addition to the bonus of one-and-a-half-month salary for all employees announced earlier.
Air India, Air India Express and Vistara salary update
Tata-owned Air India—which has had a difficult quarter with respect to its staff—has announced salary hikes of up to Rs 15,000 for pilots as well as annual performance bonus of up to Rs 1.8 lakh rupees with effect from April 1. The carrier also announced compensation for pilots who have faced inordinate delays in their ground and simulator training. Here is how the airline has structured the increments and bonuses:
From first officer to senior commander positions, salaries have been increased by Rs 5,000 to Rs 15,000 in fixed pay per month. A bonus of Rs 42,000 to Rs 1.8 lakh per annum will be given from junior first officers to senior commanders. First officer and captain will receive 60,000 rupees in annual bonus. Commander and senior commander will get 1.32 lakh and Rs 1.80 lakh in bonus.
There is, however, no salary hike announced for junior first officers. There will also be compensation for pilots who faced inordinate delays in their ground and simulator training. The airline has also introduced an annual target-based performance bonus for financial year 2024-25 which will be paid on the basis of company and individual performance.
Vistara, on the other hand, is increasing pilot as well as cabin crew salaries by up to Rs 15,000 per month and they will be eligible for bonus as per the Air India policy after completion of the Air India-Vistara merger, from FY26. Even as the airline invests heavily to effect a turnaround, Air India is likely to narrow its losses in FY24 to around Rs 7,000 crore against a massive Rs 50,000 crore loss prior to Tata Group taking over the airline from the government in January 2022.
Salary only hurdle to smooth flight?
Even as the 2 largest groups in Indian aviation make an effort to retain talent in the cockpit and cabin – will pilots and crew of Air India and Vistara tide over the differences in their minimum monthly salary that had led to en masse sick leave resulting in flight delays and cancellations in the first half of this year?
Moreover – are airlines investing enough in pilot training and upgradation as they expand their offerings with large aircraft orders? India needs an additional 2,800 pilots to cater to the growing demand for cockpits with the order book of airlines. And finally – can airlines ensure that fog-related delays and lost baggage will become a thing of the past? We’ll only have to wait and find out.
