Vistara and Air India pilots will have a unified compensation structure beginning in March, as the two airlines consolidate their human resource divisions as part of a larger consolidation of the Tata group’s aviation sector.
While compensation restructuring is the initial stage, the pilots were informed that both firms will eventually unify policy and other benefits.
Vistara and Air India pilots will have a unified compensation structure beginning in March, as the two airlines consolidate their human resource divisions as part of a larger consolidation of the Tata group’s aviation sector.
Accoridng to the Economic Times, as part of this, Vistara pilots will receive a set salary for 40 hours instead of the present 70 hours. They would be compensated for extra flying hours and will also receive a bonus depending on their years of service with the airline.
While compensation restructuring is the initial stage, the pilots were informed that both firms will eventually unify policy and other benefits. However, true operational integration will take time because regulatory approvals must be obtained first.
Reportedly, Tata Group and Singapore Airlines (SIA) announced a merger plan for Air India and Vistara in November 2022, with SIA owning 25.1% of the combined company. This followed Tata Group’s takeover of Air India in January 2022. Vistara is a 51:49 joint venture between the Tata Group and Singapore Airlines. The merger of Vistara and Air India is planned to be completed in March 2024.
The merger is an endeavor by the salt-to-steel company to streamline its aviation operations. Air India Express and Air Asia India have already merged to establish a no-frills airline, while the combined Air India and Vistara will compete in the full-service category.
BCG, a consulting firm, is assisting the Tata Group on HR integration. The salary reform is similar to Air India, which altered its remuneration system last year. The Tata group has also proposed a single, simpler wage structure and a similar seniority list for pilot career progression across all airlines.
Seniority would be determined by how long a pilot has been with a certain airline. If a pilot switches airlines, they will lose their earned seniority, regardless of flying experience. The seniority list is influenced by factors such as base choice, aircraft selection, and advancement from narrow to wide body.
Vistara and Air India have already begun the merger process for non-flying employees. Several Vistara employees were transferred to Air India after being evaluated using a method known as the Hogan Test, which was devised by the US-based corporation Hogan. The test assesses normal personality traits required for job fit, particularly in leadership positions.
