Tata group-owned Air India on Monday announced a revamp in pay structure for pilots and cabin crew, which is expected to result in pay hikes for over 2,700 pilots across Air India group carriers, including Air India, Air India Express, and AIX Connect (Air Asia India), with the latter two in the process of getting merged. The changes are also likely to benefit over 5,600 cabin crew. The changes in compensation structure come at a time when Air India is implementing a massive fleet and network expansion plan and is looking to hire more pilots and cabin crew, while retaining existing talent in a highly competitive market fuelled by resurgent demand for air travel. Major highlights of the overhaul The guaranteed flying allowance for pilots has been doubled to 40 hours per month from 20 hours, although it will still be lower than 70 hours per month that Air India pilots were entitled to prior to the Covid pandemic. The airline has also hiked the pilots’ per-hour flying allowance, apart from increasing a few other allowances, like those for international layovers and operating wide-body jets. Pilots undergoing trainings like those for command upgrade and conversion will receive additional compensation. Air India will also introduce two new designation levels for its pilots: junior first officer and senior commander. Pilots who have flown for at least four years as commanders will be made senior commanders, thereby including them into Air India’s management cadre and making them eligible for additional allowances for executive duties. According to estimates, an Air India senior commander flying 70 hours a month will now be able to earn up to Rs 8.50 lakh a month, which would be at par, if not higher, than the best pay packages for pilots in India. For trainee pilots, the airline has decided to double their stipend to Rs 50,000 per month. Contracts of pilots on fixed-term contracts will now be extended till they attain the age of 58 years instead of being renewed for five years at a time. Air India has around 800 pilots engaged on fixed-term contracts. The airline expects this move to reduce the chances of attrition in this category of pilots. Air India will also be introducing additional rewards for its long-tenured pilots as well as cabin crew. Cabin crew salaries are estimated to rise by over 20 per cent, in addition to an increase in certain allowances. Timing and significance In February, Air India placed firm orders for a cumulative 470 planes with Airbus and Boeing. This was the largest-ever aircraft order in one go from any airline anywhere in the world. Ever since Air India returned to the Tata fold in early 2022, the airline has been preparing for a significant expansion in its fleet and network. Shortly after announcing the landmark aircraft order, Air India announced that it planned to hire over 4,200 cabin crew and 900 pilots in 2023. Air India’s grand ambitions coincide with resurgence in the aviation sector with surging post-pandemic travel demand. This is likely to lead to a scramble for pilots, particularly experienced ones, among carriers. The fact that various airlines had to reduce their workforce during the pandemic only underscores the demand-supply mismatch that the rapid recovery in passenger traffic and demand is resulting in. Air India itself has been facing crew shortages as it expands its network by launching new flights. As the only Indian carrier with significant long-haul international operations and a desire to emerge as a prominent global airline, it is imperative for Air India to not just retain its existing flying staff, but also attract talent from other airlines. A sweetened compensation package, the airline would hope, will help it in achieving those ends. Apart from market leader IndiGo and upstart Akasa Air on the domestic front, Air India will also be competing with major network carriers, particularly those from the Gulf.
