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Fearing exodus, AI puts proposed pay cut on backburner

business Updated: Apr 16, 2014 14:14 IST
Soubhik Mitra
Soubhik Mitra
Hindustan Times
Air India

Fearing disruption of flight operations and a pilots’ exodus, national carrier Air India has put its proposed pay cut on the backburner. Nearly a week after the pilots’ union of its domestic fleet threatened industrial action against the airline’s proposal for a 15% pay cut, the airline has sent out an email ruling out any reduction in salaries.

The letter sent by the airline’s executive director (operations), captain SPS Suri quoted the AI chairman and managing director, “None of my pilots will be paid less than the prevailing standards in the airline industry.” HT has a copy of the email.

It added that the previous notification proposing a pay cut was sent to seek the opinions of airline staffers. AI employees now have time till April 25 to submit their suggestions. “The management backtracked from its stand after it sensed major unrest. How could anybody approve another pay cut after being underpaid for two years?” said a senior pilot requesting anonymity.

On April 10, the Indian Commercial Pilots’ Association (ICPA) had threatened ‘action’ against the pay cut claiming that it would amount to a 40% reduction in pay in two years if the proposed cut was added to other recent deductions.