The pilots and crew will receive an “upward revision” in their pay through salary letters and all the eligible non-crew employees will receive a “merit increase,” based on their performance and market benchmarks.
The budget carrier has been battling with pilot shortage for some time now. Currently, IndiGo has over 200 planes and a pilot strength of more than 3,000, including more than 1,200 commanders, of whom 50 are expatriates. It operates about 1,300 daily flights. This year, it plans to take delivery of 48 planes this year of the Airbus A320neo family, including the stretched 20-25 A321 Planes, which it plans to, deploy on the medium-haul international routes.
With a strong expansion plan in place, IndiGo is now investing more in its current employee and after three long years, it has finally decided to increase the pay of the employees. They will now look to recognize the existing potential and boost the employees’ motivation.
High fuel cost and intense competition in the industry has also been impacting the profitability of IndiGo. In the December quarter of 2018, the airline reported a net profit of Rs 191 crore, down by nearly three-fourths.
Raghvan shared, “Last fiscal year was a challenging year for the airline. Our profitability in the first few quarters was significantly impacted because of escalating oil prices and a weaker rupee.”
However, since then the airline has been working toward more growth opportunities. Raghvan added, “We, however, went through a high growth inducting new aircraft and opening new international and domestic destinations.”
Hike in salary is surely good news for employees, however, it is not the only reason that will make them stick around. The employees today look for aspects beyond compensation when they take a decision to be with a company. And as retaining the current talent and hiring new talent will be critical priorities for IndiGo, they need to look at various other ways to engage and retain their talent.