Air India has announced significant changes to its compensation structure for pilots and cabin crew, aiming to attract and retain talented staff and improve the company’s competitiveness in the aviation industry. The move includes an increase in the per-hour flying rate for pilots, which will have a positive impact on their salaries.

The airline’s chief Campbell Wilson, along with all top executives, attended the town hall.

According to an internal document reviewed by businessline, Air India plans to double the guaranteed flying allowance component for pilots from 20 hours to 40 hours, providing additional compensation for their work. The company has also revised the pay scale, introduced a performance-linked incentive plan, and increased other allowances and benefits.

Also read: From manual pricing to ChatGPT: How Air India is transforming under Tata

“These changes are part of Air India’s efforts to become more competitive in the aviation industry and improve its financial performance,” said Suresh Dutt Tripathi, Chief Human Resource Officer of Air India. “With our fleet expansion and ambitious growth plans, our flying staff would get an opportunity to significantly increase their earnings through more flying and wider career options.”

The revised compensation structure also includes the introduction of two additional levels/designations in the pilot category: Junior First Officer at entry-level and Senior Commanders for pilots with four more years of command experience on the company aircraft type. Executive Pilots of the Management cadre will also benefit from an extension of their employment contract up to the age of 58 years. The compensation for trainees has been increased by 100 per cent. 

The changes for cabin crew include the introduction of guaranteed flying allowance of 40 hours per month, revision of flying rates for FTC cabin crew, rationalisation of allowances, and the introduction of performance-linked annual bonus and productivity criteria defined in the Wings of Excellence Program. The salaries of cabin crew, according to sources, have been increased by at least 20 per cent.

“We understand the importance of providing competitive salaries to our employees, and we have delivered on our promise to revise salaries in line with the market standards,” Tripathi added. “In addition to the salary revisions, we have also introduced best-in-class employee insurances, such as Loss of License for pilots, term life insurance, personal accident insurance, and medical cover for all employees (permanent and FTC alike) in the past few weeks. These are significant steps towards realizing the commitments we made to you.”