Air India Express to reduce salaries of employees by up to 40%

In order to cut costs, the low-cost airline has been forced to reduce the allowances of its pilots and other staff, and also renegotiate contracts with key vendors.

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Close on the heels of Air India reducing the monthly allowance of its employees, now its wholly-owned subsidiary, Air India Express, has also announced a rationalisation scheme for pay cuts of its staff. The pilots’ allowances will be reduced by 40 per cent, which also includes flying allowances, special pay and layover allowances.

The move was made after it witnessed a massive decline in revenues of 88 per cent up to July, because of the pandemic impact.

In an office circular dated August 5, T Vijayakrishnan, chief of HR, said that the Company, along with other aviation companies, has been adversely impacted by the Covid-19 pandemic.

To be able to pay its lenders, vendors and aircraft lessors, the low-cost airline was forced to cut costs and renegotiate contracts with all key vendors.

Earlier, parent company Air India, had also implemented a rationalisation scheme to reduce the funds outflow in terms of compensation to employees.

The low-cost airline went ahead and implemented this scheme after receiving directions from the Civil Aviation Ministry and Air India, following the extremely critical situation.

For ground employees earning up to Rs 25,000, there will be no reduction in salaries. However, there will be a 5 per cent reduction for the senior officers and reduction of 7.5 per cent for employees above this level, including the CEO.

For trainee captains, the salaries will be reduced by 40 per cent. For first officers, co-pilots and trainee co-pilots, the flying allowance will be reduced by 40 per cent.

The monthly stipend of trainee co-pilots will be reduced by 10 per cent. For cabin crew, the domestic layover allowance will be reduced by 10 per cent.

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