IndiGo revises contract of 'non-released' pilots, cuts pay by 50%

IndiGo has revised the contract terms of pilots who are undergoing training, with new terms including up to a 50 percent cut in salaries and a change in rostering.

Most of these pilots, sources told Moneycontrol, had joined the country's largest airline from Jet Airways, which had suspended operations in April last year.

"These are non-released pilots. They have got a 50 percent pay cut, and the new contract is valid till March 2021," said a senior executive from the industry.

Pilots undergoing training are called 'non-released'.

According to the new contract, these pilots will be on a two-week-on and two-week-off schedule. Normally, a pilot is asked to be available for the full month, and leaves depend on the rostering. Reduced flying hours impacts the allowances a pilot gets.

Moneycontrol has written to IndiGo for a response, and will update the story accordingly.

The airline had announced pay cuts from May. This was after it had rolled back a similar announcement in April. In a mail to employees, CEO Ronojoy Dutta had said "Leave without pay will range from 1.5-5 days depending on the employee group. Level A employees, who form a majority of our workforce will not be impacted."

IndiGo and its peers, including SpiceJet, GoAir and Vistara, have been forced to take steps to reduce their salary bills, as a severe cash crunch threatens the viability of their businesses. Flights have been suspended since March, when the government announced the lockdown to limit the COVID-19 spread. And there is no clarity on when the airlines can resume flights.

Jet Airways pilots

IndiGo is said to have hired over 400 pilots who earlier flew with Jet Airways. But their training - necessary because IndiGo fleet is Airbus and Jet Airways had Boeing aircraft - has been slow, say industry executives.

"There has been a shortage of trainers. And then the schedule has been pegged back because of the lockdown," said a senior executive.

The delay is especially so for pilots who had joined late last year.

Original Source: https://www.moneycontrol.com/news/business/companies/indigo-revises-contract-of-non-released-pilots-cuts-pay-by-50-5264311.html