IndiGo boosts pilot allowances amid regulatory probe following large-scale cancellations

IndiGo has introduced new pilot allowances and increased some existing payments, signalling efforts by India’s largest airline to improve pilot morale weeks after mass flight cancellations linked to poor roster planning left passengers stranded across the country, according to a Reuters report.

As per an internal email sent to pilots by Ashim Mittra, senior vice president for flight operations, the airline will raise layover allowances for captains to Rs 3,000 from Rs 2,000, while first officers will see their allowance increased to Rs 1,500 from Rs 1,000. Allowances for deadheading, a practice in which airline crew travel as passengers to position themselves for future duties, will also be increased, with captains receiving Rs 4,000 instead of Rs 3,000 and first officers seeing a Rs 500 rise to Rs 2,000, the email stated.

IndiGo, which employs around 5,000 pilots according to government data, did not immediately respond to requests for comment, the Reuters report added.

The move comes as the airline, which commands around 65 per cent of India’s domestic aviation market, faces heightened regulatory scrutiny and a competition probe following the cancellation of about 4,500 flights earlier this month. The disruptions left hundreds of thousands of passengers stranded across India and caused significant chaos at several airports.

In response to the cancellations, Indian authorities temporarily relaxed certain rules governing night duty for pilots earlier this month to help IndiGo stabilise operations, a step that drew criticism from pilot unions and aviation safety advocates.

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

Moody’s Ratings has warned that IndiGo could suffer significant financial damage due to revenue losses from cancellations, customer refunds and potential penalties imposed by Indian authorities, the report said.

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

Indian airlines are also grappling with competition to retain pilots amid the risk of them being poached by foreign carriers offering higher pay and improved quality of life, prompting the Indian government to call for a global code of conduct on pilot hiring, according to the report.