IndiGo raises pilot allowances after flight disruptions

IndiGo has reportedly introduced new pilot allowances and increased some existing ones, a move seen as an effort to improve pilot morale following widespread flight cancellations earlier this month.

The airline will raise layover allowances to 3,000 rupees ($33.37) from 2,000 rupees for captains, and to 1,500 rupees from 1,000 rupees for first officers, according to an email sent to pilots by Ashim Mittra, senior vice president for flight operations.

Allowances for “deadheading,” a practice in which airline crew travel as passengers to position themselves for future duty, will increase to 4,000 rupees from 3,000 rupees for captains, and by 500 rupees to 2,000 rupees for first officers, the email said.

The airline, which holds about a 65% share of India’s domestic aviation market, is facing heightened regulatory scrutiny and a competition probe after cancelling around 4,500 flights earlier this month. The cancellations left hundreds of thousands of passengers stranded across the country and disrupted airport operations.

In response, Indian authorities temporarily relaxed some rules on night duty for pilots to help the airline stabilise operations, a move that drew criticism from pilot unions and safety advocates.

A committee appointed by India’s aviation regulator to examine the circumstances behind the cancellations submitted its report last week, the civil aviation ministry said.

Moody’s Ratings has warned that IndiGo could face “significant financial damage” from lost revenue, customer refunds and penalties imposed by Indian authorities.

The revised allowances, which take effect from January 1, were announced after IndiGo executives visited various bases to hold discussions with pilots, Mittra said in the email seen by Reuters.

Indian airlines are also under pressure to retain pilots amid competition from foreign carriers offering higher pay and improved working conditions, a trend that has prompted the Indian government to call for a global code of conduct on pilot hiring.