Union Concerns and Passenger Frustration
A union representing a section of the Air India Express cabin crew has raised concerns about mismanagement and unequal treatment of staff. The Air India Express Employees Union (AIXEU), which claims to represent around 300 cabin crew members, mostly seniors, has alleged that mismanagement has affected the morale of the employees.Passengers have also expressed frustration on social media over the sudden flight cancellations. In response to a passenger’s post about a cancelled flight, Air India Express apologized and cited “operational reasons” for the cancellation.
As part of consolidating its airline business, Tata Group is merging Air India Express and AIX Connect, as well as Vistara with Air India. However, the mergers have been met with resistance from employees who allege mismanagement and inequality in the treatment of staff.
Air India Express and Vistara: Similar ChallengesThe situation at Air India Express mirrors the pilot woes faced by Vistara, another Tata Group-owned airline. Vistara has experienced more than 150 flight cancellations and numerous delays recently, as pilots have gone on mass sick leave.A letter sent to N Chandrasekaran, chairman of Tata Group, by Air India Express Employees Union (AIXEU) in April highlighted various grievances, including the removal of allowances such as HRA, resulting in significant salary cuts despite the airline’s consistent profitability. The letter also mentioned a lack of equality in the treatment of employees, with internal job postings being filled by external candidates, bypassing qualified internal candidates.
According to the letter sent in April, various allowances, including HRA, which were part of the compensation prior to the merger have been removed. This has resulted in significant salary cuts despite the airline consistently posting profits, it added.
“There is a glaring lack of equality in the treatment of employees. Salaries, experience, and merits are being disregarded, with internal job postings now being filled by candidates external to Air India Express, bypassing qualified internal candidates,” the letter said.
Vistara Grappled with Flight Cancellations and Delays Amid Pilot Discontent in April
Vistara, a Tata Group-owned airline, faced significant disruptions earlier in April, with over 150 flight cancellations and numerous delays as pilots went on mass sick leave. The situation worsened over the weekend, culminating in nearly 80 cancelled flights and 90 delayed flights on Monday. This trend continued on Tuesday with more than 50 cancellations and numerous delays.
The root cause of these disruptions was an HR issue, specifically related to the new compensation structure for pilots. The new pay structure, announced in February as part of the pay harmonization exercise before Vistara’s merger with Air India, guarantees pay for only 40 flying hours per month, down from 70 hours previously. Many first officers fear that this change could significantly reduce their take-home salaries.
In response to the discontent among pilots, Vistara’s management issued an ultimatum, requiring pilots to accept the new pay structure or forgo the associated one-time payout and the opportunity to work with Air India post-merger. This ultimatum further aggravated the situation, leading to more pilots calling in sick.
Pilots expressed concerned about their pay and their career progression post-merger with Air India, expected to be completed next year. Some pilots were unhappy with the company’s rostering practices, which they claimed seriously impact their work-life balance.
Challenges in Airline Consolidation
These disruptions at Vistara highlight potential challenges for the Tata Group as it consolidates its airline business. Apart from merging Air India and Vistara, the conglomerate is also merging its low-cost carriers, Air India Express and AIX Connect (formerly Air Asia India). People integration, including bringing about pay parity and integrating employees from different organizational cultures, will be among the greatest challenges for the company.
The 2007 merger of Air India and Indian Airlines serves as a cautionary tale, as the HR issues resulting from the merger took years to resolve and fueled lasting disaffection among employees.
