Vistara, Air India pilots to have uniform pay structure

New Delhi: Vistara and Air India pilots will have a uniform salary structure from March as the two airlines integrate their human resource departments as part of a broader consolidation of the Tata group‘s aviation business.

As part of this, pilots of Vistara will get a fixed salary for 40 hours instead of the current 70 hours. They will get paid for extra flying hours and will also earn an additional amount as a reward based on the years of service with the airline, according to a memo sent to pilots and reviewed by ET.

While restructuring of salary is the first step, both the companies will also align policies and other benefits subsequently, the pilots were told. However, a complete integration of operations will take time as it will happen only after receiving regulatory approvals.

The airlines didn’t respond to ET’s queries.

Tata group and Singapore Airlines (SIA) announced the merger plan for Air India and Vistara in November 2022, with SIA holding 25.1% of the merged entity. This followed the acquisition of Air India by Tata group in January 2022. Vistara is a 51:49 joint venture between Tata Group and Singapore Airlines. The merger of Vistara and Air India is expected to be completed by March 2024.

The merger is an effort by the salt-to-steel conglomerate to simplify its airline business. Air India Express and Air Asia India have already been integrated to form a no-frills airline while the combined entity of Air India and Vistara will compete in the full-service segment.

Consulting firm BCG is advising the Tata group on integration of its human resources.

The salary restructuring is akin to Air India which had also revised its compensation structure last year.

The Tata group has also proposed a single simplified salary structure and a common seniority list for career progression of pilots across its airlines.

Seniority would depend on the duration of a pilot’s tenure with a specific airline. If a pilot switches airlines, they will lose their accumulated seniority irrespective of flying experience. Factors like choice of base, choice of aircraft and progression from a narrow body to wide body hinge on the seniority list.

Vistara and Air India have also started the integration process of non-flying employees. Several Vistara employees have been transferred to Air India, after being appraised through a process called Hogan Test, designed by a US-based firm Hogan. The test measures normal personality characteristics necessary for job fit, especially leadership roles.