The airline will contribute the initial down payment for luxury cars worth up to Rs 45 lakh for its pilots.
India’s budget airline, SpiceJet, has taken a new route to retain its employees. It is offering to buy high-end luxury cars worth up to Rs 45 lakh for its pilots as it struggles to retain them from competition.
Under this recently announced policy, the company will buy the vehicle on behalf of the employee making the initial down payment, as the ‘company’s contribution’. The equated monthly instalment (EMI) will have to be paid by the employee and would be deducted from her/his salary. The down payment will vary depending on the vehicle chosen by the employee.
Despite the fact that the EMIs will be deducted each month from the employees’ salary, the deal still remains an attractive one as their basic salary would be paid to them after deducting the EMI. This, in turn, will bring down their taxable income substantially.
The policy also has some additional benefits—the company will bear all the expenses in case the vehicle meets with an accident; it will pay the annual car insurance; in case a pilot is transferred to a different base, the vehicle will be transported at the company’s cost.
According to the policy, the vehicle will remain in the company’s name for four years till the EMIs are fully paid. The vehicle registration will be transferred to the employee, after this duration. On the downside, the employee will have to return the down payment amount and the balance EMIs in case he leaves the company before four years.
The pilots and senior management will be able to enjoy the benefits of this policy — a measure to retain more Indian pilots in the workforce as a lot of pilots have been moving to the cash-rich Gulf carriers lately. The Gulf carriers have been offering lucrative perks — tax-free salaries, company housing, and schooling and medical expenses borne by the airline— making it a worthwhile deal for Indian pilots.
Owing to a shortage of pilots, Indian companies are forced to hire high-costing expatriate pilots, who are paid top dollar salaries. According to Aviation Ministry data, Indian carriers employed a total of 286 foreign pilots as of June 30 last year.