GURUGRAM- Starting in March, Vistara (UK) and Air India (AI) pilots are set to adopt a standardized salary framework as the two airlines merge their human resource departments in line with the broader consolidation of the Tata group’s aviation business.
As a component of this initiative, Vistara pilots will receive a fixed salary for 40 hours, a shift from the existing 70 hours. Compensation for additional flying hours will be provided, and an extra amount based on years of service with the airline will be granted, as outlined in a memo sent to pilots and reviewed by ET.
Air India Vistara Pilots Pay
While the initial focus is on restructuring the salary, both companies will subsequently harmonize policies and other benefits, as communicated to the pilots. However, the complete integration of operations is a gradual process, contingent on obtaining regulatory approvals.
In November 2022, Tata Group and Singapore Airlines (SQ) unveiled plans to merge Air India and Vistara, with SIA holding a 25.1% stake in the combined entity. This development came after Tata Group’s acquisition of Air India in January 2022. Vistara, a joint venture between Tata Group and Singapore Airlines with a 51:49 partnership, is set to merge with Air India by March 2024.
The merger represents an initiative by the diversified conglomerate to streamline its aviation business. The integration of Air India Express (IX) and Air Asia India (I5) has already taken place to create a no-frills airline, while the amalgamation of Air India and Vistara aims to establish a presence in the full-service segment.
To facilitate this complex process, consulting firm BCG is providing advisory services to Tata Group on the integration of human resources.
Hogan Test for Employee Transfer
The restructuring of salaries mirrors the approach taken by Air India, which also underwent a revision of its compensation structure last year.
Additionally, the Tata Group has put forth a proposal for a unified and simplified salary structure, along with a shared seniority list to govern the career progression of pilots across all its airlines.
Seniority will be contingent on the duration of a pilot’s service with a specific airline. In the event of a pilot transitioning between airlines, the accumulated seniority will be forfeited, irrespective of their flying experience.
Decisions related to base selection, aircraft preference, and progression from narrow-body to wide-body aircraft will be influenced by the seniority list.
The integration process for non-flying employees of Vistara and Air India has also commenced. Using the Hogan Test, designed by the US-based firm Hogan, several Vistara employees have been transferred to Air India after undergoing assessments. This test evaluates essential personality characteristics for job fit, particularly in leadership roles.
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