Vistara will continue to reduce staff salaries until March; to go flight allowance for pilots

MUMBAI: full service operator Vistara it will continue with its staff pay cuts until March, but will eliminate unpaid three-day leave for pilots from 1 January.
For pilots, the carrier will implement a 10% pay cut, while at the same time increasing its monthly flight allowance to 40 hours from 20 hours currently, a Vistara spokesman he said in a statement to the ITP on Thursday.
Vistara, a joint venture between Tata Group and Singapore Airlines, announced on June 30 a pay cut of almost 40% of the total workforce by December 31 to cope with low cash flow amid weak passenger demand following the pandemic.
For pilots, who received a basic flight allowance in April, which is a fixed component of the salary, for 70 hours per month, the allowance was reduced to 20 hours until 31 December.
In September, the airline also introduced a three-day “Free Leave” for pilots.
“Vistara’s salary reduction scheme will continue to be in place until March 31, 2021, as part of which Vistara CEO will continue to reduce a maximum of 25% of monthly salaries,” the spokesman said.
The spokesman added that the airline’s senior staff, including members of management, will be affected by a 15% reduction in their monthly salary; while for those with intermediate-junior-intermediate levels, the reduction will be 10%.
“Covid-19 continues to have an industry-wide impact on business, despite improved operating environment. While we currently have almost 70% of our pre-Covid-19 capacity, our operating revenues are still a long way off. significantly higher than normal levels, “Vistara spokesman said in a statement.
To this end, the airline continues to take several measures to control operational expenses, including limiting personnel costs, the spokesman added.
Juniors, whose monthly cost to the company is equal to or exceeds Rs 50,000, will be affected by a 5% monthly salary reduction, Vistara said.
“For pilots, a 10% monthly salary reduction will be applied. However, their monthly flight allowance will increase from the current 20 hours to 40 hours. The scheme does not impact almost 60% of Vistara staff at the junior level, “the spokesman added.
The aviation sector continues to struggle with low passenger volumes and travel restrictions in different countries. Although scheduled international trade operations remain suspended as of March 23, domestic demand has increased successively since the resumption of services in May, but has not matched the pre-Covid-19 level.
The internal volume of passengers in November was almost half of the level of November 2019 at 52.71 lakh passengers, according to data from the General Directorate of Civil Aviation. However, month-on-month domestic demand increased by 22% compared to October 2020, according to data.
“Our approach to continuing the measured growth of the business puts the company in a position to continue to save all jobs and implement a rational reduction in staff costs, even if making that decision has always been the most difficult for the board. management and management of the company, ‚Äúsaid Vistara.
The airline has stated that it intends to intensify its domestic operations in line with government guidelines and remain operationally prepared to operate more international flights whenever they are allowed to resume scheduled operations.
Earlier this month, the Ministry of Civil Aviation allowed airlines to increase capacity to 80% from 70% earlier.
“Our long-term plans to expand the fleet and network in and out of India remain unchanged,” the spokesman said.

Source