IndiGo increases allowances for pilots, looks to boost morale

IndiGo has announced a series of new and increased allowances for its pilots, effective from January 1, in a move to reinforce pilot morale following recent operational disruptions. The adjustments come shortly after the airline cancelled approximately 4,500 flights earlier this month, an event that left hundreds of thousands of passengers stranded and led to heightened regulatory investigation. The carrier, which controls around 65% of India's domestic aviation market, is under significant scrutiny from both government agencies and industry regulators.

The newly introduced measures will see layover allowances for captains rise from Rs 2,000 to Rs 3,000, while first officers will see an increase from Rs 1,000 to Rs 1,500. Additionally, the allowance for "deadheading" – when crew members travel as passengers to reach a future duty location – will be increased to Rs 4,000 from Rs 3,000 for captains, and to Rs 2,000 from Rs 1,500 for first officers, according to an internal email from Ashim Mittra, senior vice president for flight operations.

According to government data, IndiGo employs roughly 5,000 pilots. 

The cancellations earlier this month prompted the Indian government to temporarily relax some pilot night duty regulations in order to help stabilise IndiGo's operations. This decision has attracted criticism from pilot unions and safety advocates, who raised concerns about its implications for crew welfare and flight safety.

A committee appointed by India's aviation regulator has completed an inquiry into the circumstances that led to the widespread cancellations and has submitted its findings to the civil aviation ministry. The details of the report have not been made public.

Credit ratings agency Moody's Ratings has cautioned that the airline could face "significant financial damage" due to lost revenue, customer refunds, and penalties imposed by Indian authorities.

IndiGo's recent decision to adjust pilot allowances comes after executives visited various company bases to hold discussions with flight crew. This engagement sought to address pilot concerns and improve working conditions in the wake of the operational crisis.

The Indian government has also highlighted growing competition among domestic airlines to retain pilots, as foreign carriers continue to lure Indian pilots with the promise of better pay and improved quality of life. To address this, the government has called for a global code of conduct on pilot hiring.