Amid Rising Competition, Air India May Reward Talent With 8-10% Salary Hike

Air India is expected to announce salary hikes for its employees. The planned hikes will benefit employees across the board, including pilots and cabin crew, a

report said. Increments are likely to be in the range of 8-10 per cent. The development has come when industry competition is on the rise.

This is the first performance review of employees since the Tata Group took control of Air India. The step is likely to bring parity between expatriate and Indian pilots, the report said, quoting an industry expert.

Furthermore, the report quoted the expert as saying, "The first round of hikes may be over the next couple of months. Pilots will be the first to get hikes. Salary corrections will also take place for the cabin crew and other officers."

As airlines in the industry are planning expansion to meet the rising demand, there has been a greater demand for pilots and cabin crew. The report added that the shortage of pilots in the industry is the key reason behind the decision to hike salaries. Primarily, the airlines do not want talent to join another company.

In its report, aviation consultancy firm CAPA said that Indian airlines are expected to order 1500-1700 planes over the next two years. Presently, Indian airlines operate more than 700 commercial aircraft, and an additional 1,000 plus planes are in the pipeline, the report said.

Considering all these factors, airlines are wary of competition and want to secure their talent. The lucrative offers provided by the middle-eastern operators are another challenge that Indian airlines are keeping in mind, the report said.