The Tata Group successfully won the bid for the loss-making Air India airline last year and was taken over by The Tata Group. The airline sector had been severely affected by the coronavirus pandemic, and the operators turned to cost-cutting measures, such as salary cuts, to manage their finances. The airline informed its workforce on Friday that starting on September 1, all staff salaries would return to their pre-coronavirus levels.
Air India’s Staff Salary Will Be Restored
The airline informed its workforce on Friday that starting on September 1, it would reinstate the salaries of all employees to their pre-coronavirus levels. Additionally, the airline has stated that starting on the same date, meal plans and staff layover allowances for pilots and cabin personnel will be adjusted to pre-covid levels. Campbell Wilson, CEO and Managing Director, Air India said that the salary reductions will be restored for all the employees. Wilson stated that even though the airline still has a long way to go before it becomes profitable again, ‘sunsetting most of the COVID measures is an important and welcome milestone.’Air India began gradually raising employee’s salaries to their pre-pandemic levels earlier this year.
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Pandemic Affected The Airline Industry
The coronavirus had a significant impact on the airline industry, thus the owners went to cost-cutting strategies, like salary reductions, to manage their finances. Air India reduced the flying allowance by 35%, the special pay by 40%, and the wide body allowance by 40%, following the pandemic. Cabin crew members’ flying and wide body allowances were reduced by 15% and 20%, respectively. The government paid off the remaining loan balance of 46,262 crores as well as an outstanding amount of roughly 15,000 crore for unpaid fuel bills while Tatas assumed responsibility for the debt of Air India and Air India Express Ltd totaling 15,300 crores.
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