Air India revamps pilot pay, career path to curb attrition

In a bid to stem pilot attrition and strengthen retention, Air India has unveiled a revamped pay and career progression package that includes an 8–15% increase in fixed salary, and higher flying pay for hours beyond the guaranteed 40-hour threshold.

The Tata Group-owned airlines also enhanced training compensation, new incentives for Boeing 737 pilots to address cockpit shortages at Air India Express, and preferred base postings for pilots assigned to the low-cost subsidiary.

Following its privatisation, Air India introduced a 40-hour guaranteed pay structure in 2022, well below industry leader IndiGo’s 70-hour guarantee, a disparity that contributed to pilot attrition. The latest overhaul is aimed at narrowing that gap and improving the airline’s ability to retain cockpit crew.

While Air India’s 40-hour guaranteed pay structure remains unchanged, pilots will receive an 8–15% increase in fixed pay, with commanders getting the highest hike of about 15%. In addition to the increase in fixed pay, Air India has revised productivity pay for flying beyond the guaranteed 40 hours. Hourly flying rates have been increased across most flying bands, with the biggest gains in the lower productivity slabs, translating into higher monthly earnings as pilots fly more hours.

Recognising that pilots are spending longer periods in training as the airline expands its fleet and introduces new aircraft types, Air India has revised its training compensation. Since pilot earnings are closely linked to flying hours, extended training periods can reduce their income. Under the new policy, training pay will be linked to the average flying hours of the pilot’s fleet type, helping protect earnings while they are away from active flying duties.

To encourage pilots to work at low-cost carrier Air India Express, which is grappling with a shortage of crew, a Boeing 737 fleet allowance has been introduced for the first time. Boeing 737 pilots will receive a one-time fleet retention allowance spread over three years, amounting to ₹21 lakh for commanders and ₹10 lakh for senior first officers.

Under the new career progression framework, pilots aspiring to become captains will also be required to complete a stint at Air India Express before becoming eligible for command. Those who do so will be given their preferred base after completing two years. Air India and Air India Express will also maintain a common seniority pool, allowing pilots from both airlines an opportunity to progress to Air India’s wide-body, long-haul operations.