This story is from October 25, 2014

Fund-hit AI cracks whip on 4 senior pilots, to recover Rs 2cr

Surviving on tax-payers’ money, loss-making Air India has for the first time begun cracking the whip on pilots who fly very little but get paid a lot. The airline has slapped recovery of Rs 2 crore on four executive (senior most) pilots.
Fund-hit AI cracks whip on 4 senior pilots, to recover Rs 2cr
NEW DELHI: Surviving on tax-payers’ money, loss-making Air India has for the first time begun cracking the whip on pilots who fly very little but get paid a lot. The airline has slapped recovery of Rs 2 crore on four executive (senior most) pilots. AI will now deduct their salary by upto Rs 3 lakh a month to recover the extra payment made to them.
Erstwhile AI pilots get paid for fixed 80 hours a month and their erstwhile Indian Airlines’ colleagues get fixed pay of 72 hours a month, irrespective of the actual flying done by them.
Those who fly for more than these levels get paid at a higher rate as an incentive for working hard.
“Almost 30% to 40% of the 1,600 pilots in merged AI fly for much less than the fixed number of hours that they are paid for. Some fly for as less as five hours a month and in some cases we find it difficult to keep their licences valid by having three landings in 90 days. Because of these people working less, others have to work more and hence paid at a higher rate. It is a double whammy for AI,” said a senior official.
For instance, erstwhile IA pilots get fixed pay for 72 hours a month and flying allowance for this is about Rs 5,000 per hour. Pilots flying between 72 and 85 hours get Rs 7,500 per hour and flying for over 85 hours raises the hourly allowance to Rs 10,000.
“This extra payment of Rs 2 crore to four executive pilots is just the tip of the iceberg. If a detailed analysis of how flies how much and gets what pay cheque is done, all hell will break lose. At least we have begun acting against executive pilots as they can’t go on strike. But taking similar steps against line pilots (who can be part of unions) may lead to industrial action,” said a senior official.
This work-less-get-more policy has led to tremendous heartburn within the airline that has 1,600 pilots. AI has been deducting 25% pay of pilots and other employees for past two to three years. Pilots who do not shirk away from flying are upset at their pay cut. The airline has seen as many as 57 resignations in past six months.

“Many of them wanted to opt for voluntary retirement scheme but when AI did not accept that, they resigned. A majority of those resignations are yet to be accepted. Still 18 of them have joined private airlines, mainly IndiGo,” said an official.
While AI wants the regulator to suspend the flying licence of these 18 pilots, its failure to pay pilots as per agreements — thanks to issues like people flying less while earning much more — means its threat of taking action against them may come a cropper. The DGCA has ruled that if an airline fails to meet its contractual obligations, then pilots don’t need to serve a six-month notice period before leaving and joining elsewhere.
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