Air India to reinstate salary of all employees along with layover allowances to pre-covid levels

AIR INDIA

Air India told its employees on Friday, August 26 that it will restore their salaries to pre-Covid-19 levels from September. The airline is also set to restore crew layover allowances and meal arrangements for pilots and cabin crew at the same time.

Battered by the Covid-19 pandemic, Air India and other Indian carriers had cut the salaries of their employees and reduced the layover allowances and meal arrangements of their flight crew to save money.

The development comes as the new owner of the airline, the Tata Group, has begun the process of fully restoring employee salaries as part of a wider restructuring of wages and allowances to align them with those of its three other airlines.

AIR INDIA
Air India to reinstate salary of all employees along with layover allowances to pre-covid levels

Tata Sons-owned Vistara and AirAsia India restored the salaries and flying allowances of pilots to pre-pandemic levels in May.

ALSO READ – Air India begins restoring salaries to pre-pandemic levels gradually

In April, Air India restored salaries to almost 75% of the pre-pandemic level. Then, it restored 20% of the flying allowances. At present, salaries are 35% below the levels before the Covid outbreak. Special pay for pilots and wide body allowances will be restored by 25%, after having been slashed by 40%.

“While we have much to do to return to profitability and in our mission of bringing back Air India back to the heights of world aviation, sunsetting most of the Covid measures is an important and welcome milestone.”

Campbell Wilson, CEO, Air India

ALSO READ – IndiGo reinstates pilots and crew salaries by 8% from August 1

Earlier this month, IndiGo partially reinstated the salaries of its pilots with the stabilisation and growth in its operations. The company announced an 8% increase in salaries of pilots with effect from April. In 2020, it cut the salaries of pilots by 28%.

ALSO READ – IndiGo partially restores pilot salaries by 8% from April 1

AIR INDIA
After the pandemic hit, Air India cut its flying allowance by 35%, special pay by 40%, and wide body allowance by 40%.

The coronavirus pandemic had significantly impacted the airline industry, and the operators had resorted to cost-cutting measures, including salary reductions, to manage their financials.

After the pandemic hit, Air India cut its flying allowance by 35%, special pay by 40%, and wide body allowance by 40%. Flying and wide body allowance of cabin crew members were cut by 15% and 20% respectively.

Tatas took over INR 15,300 crore of debt of Air India and Air India Express Ltd while the remaining INR 46,262 crore loan plus an outstanding of about INR 15,000 crore towards unpaid fuel bills were paid off by the government.

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