NEW DELHI: Air India on Friday announced an 8% to 15% increase in pilot compensation, with the biggest hikes going to commanders and progressively lower increases across other ranks, as the airline looks to retain cockpit crew and prepare for an ambitious expansion.
The revised pay structure is also aimed at making Air India Express more attractive to pilots, particularly as the group seeks to address manpower shortages on its Boeing 737 fleet and create a clearer career path from first officer to captain and eventually to widebody operations at Air India.
Under the new framework, first officers will primarily receive opportunities for command upgrades at Air India Express, which operates a single-aisle fleet, before moving to Air India, where they can progress to widebody flying and higher-paying command positions.
The strategy is designed to strengthen pilot retention while creating a structured progression route within the Tata group’s airlines.
For years, Air India pilots have had a 40-hour guaranteed-pay arrangement, under which they receive pay for a minimum of 40 flying hours regardless of actual flying. Pilots flying beyond that threshold receive additional flying allowances. IndiGo, by comparison, has a fixed-pay structure based on 70 hours, a difference that has been a source of discontent among some Air India pilots.
Under the revised system, Air India will retain the 40-hour guaranteed-pay provision but increase flying allowance rates. Allowances for flying beyond 40 hours have also been raised, bringing compensation closer to industry benchmarks while linking additional earnings to flying productivity.
A senior commander flying around 55 hours a month will now earn approximately Rs 8.3 lakh, compared with Rs 7.5 lakh currently. A first officer flying the same number of hours will earn about Rs 3.3 lakh, up from slightly more than Rs 3 lakh.
The pay revision comes as Air India restores international services cut following the West Asia crisis. The airline is expected to return to its January-February flight levels by next month.
The continued closure of Pakistani airspace to Indian carriers remains a challenge, forcing longer routes for flights to and from the West. Foreign carriers that can use more direct routes therefore have an advantage, while Indian airlines face longer flying times and consequently greater crew requirements.
The airline has also revised leave provisions. Privilege leave has been reduced from 30 days to 24 days. However, people familiar with the matter said mandatory weekly days off provided to pilots under regulatory requirements will not be counted as part of the new leave entitlement, meaning the effective reduction may be less than it appears.
The pay hike is part of a broader effort by Air India to prepare for its next phase of growth rather than remain focused on the financial and operational challenges of the past few years.
Since the Tata Group took control of Air India and Air India Express in January 2022, the group’s flagship airline has accumulated losses of more than Rs 55,000 crore, due to multiple factors. The latest compensation changes signal a greater emphasis on retaining talent and building capacity ahead of a major fleet expansion.
“New career pathways, enhanced compensation and benefits, and improved quality-of-life initiatives support Air India Group’s next phase of expansion,” an airline official said.
The group has expanded from around 100 aircraft in 2022 to nearly 300, while placing orders for about 600 new aircraft, including 80 widebody planes.
The group is also investing in pilot training infrastructure, including a modern aviation academy in Gurugram equipped with Airbus and Boeing full-flight simulators, as well as a new flying training school in Amravati, Maharashtra.
Under the new career framework, pilots across Air India and Air India Express will operate under a common seniority system, giving them a more integrated and transparent route for career progression across the group.
Air India Express will serve as the primary pathway for pilots seeking command upgrades. The airline said the approach would allow pilots to gain command experience earlier in their careers before progressing to Air India.
Once they have built command experience at Air India Express, pilots can move to Air India and pursue widebody flying and command opportunities.
With 80 additional widebody aircraft on order and scheduled for delivery over the coming years, Air India says the expansion will create a long-term career pathway for pilots that is unusual in the Indian aviation industry.
To support the growing Boeing 737 operation at Air India Express, the group is also offering an additional fleet allowance to pilots who opt to join and support the fleet.
The measures underline Air India’s attempt to align pilot compensation, career progression and training capacity with the scale of its planned expansion, even as the group continues to navigate the operational challenges facing Indian aviation.
