ESOPs to incentivise Air India employees

After the Airline’s acquisition by the Tata Group, changes are being brought about slowly and steadily 


Air India is considering offering employee stock options (ESOPs) to its employees as an incentive, in an attempt to improve productivity.

The national carrier, which was taken over by the Tata Group is not the only company in the Group to introduce an ESOP policy. A couple of years ago, Tata Motors had also offered ESOPs to the workforce.

Very soon, key performance indicators (KPI) may be introduced for the employees, based on which their performance will be evaluated.

Among other changes, recently, Air India had announced a group medical insurance which will be implemented from 15 May, 2022. This will cover both the employees on the rolls and those on contract, along with their dependents and families residing in India.

Earlier, the airline had revealed that it would be restoring the flying allowance for pilots by 20 per cent along with the special pay of the pilots by 25 per cent. The pilots had been taking a pay cut since the pandemic struck.

In February this year, the Delhi High Court had dismissed two petitions filed by India Aircraft Engineers’ Association and Air India Aircraft Engineers’ Association which alleged that Air India had indiscriminately reduced employees’ allowances during the pandemic when the Airline was going through tough times, witnessing losses of Rs 50,000 crore and cash deficit of Rs 250 crores a month.

As per the court order, it was for the Centre and Air India to determine, by taking into account relevant considerations, what the appropriate reduction in allowance ought to be, and that the decision was not unjustified.

Comment on the Article

Please enter your comment!
Please enter your name here

2 × one =