Air India unveils revised cabin crew guidelines

Source news: Air India introduces new policy for cabin crew - BusinessToday

Air India has introduced a significant revision in its cabin crew policies, aimed at aligning compensation and benefits with industry standards and harmonizing practices across its recently merged entities. The new policy brings several changes for both domestic and international flight cabin crew, especially in terms of layover accommodations and allowances.

Key Highlights:

Increased Allowances for International Cabin Crew:

The allowances for cabin crew members on international flights have been increased from the previous bracket of USD 75-125 to USD 85-135. This move aims to offer more competitive compensation to employees, keeping pace with industry standards.

Domestic Cabin Crew Allowances:

For cabin crew members on domestic flights, the allowances remain unchanged. However, they will now receive a support allowance of Rs 1,000 per night during layovers, ensuring some additional compensation for their time spent away from home.

Room Sharing During Layovers:

One of the notable changes is the introduction of room-sharing for certain cabin crew members during layovers. Under the revised policy, most cabin crew (excluding in-flight managers and executives) will need to share rooms. This policy already exists at Air India Express and Vistara but is new for Air India.

In-flight managers and senior executives, typically with over 8-9 years of experience, will be exempt from this requirement and will continue to have individual accommodations.

Merger with Air India Express and Vistara:

Air India has recently merged Air India Express with AIX Connect (completed on October 1, 2024) and is in the final stages of integrating Vistara, with the merger expected to complete next month.

These mergers have necessitated the harmonization of employee policies across the combined entities. The revised policies, according to an Air India spokesperson, are designed to ensure that compensation and benefits remain competitive while addressing the needs of employees from all the integrated airlines.

Performance-Linked Compensation Policy:

As part of the airline’s broader employee benefits strategy, Air India had already introduced a performance-linked compensation and benefits policy for all its employees in April 2023. This move was intended to reward employees based on their performance, ensuring greater alignment between compensation and individual contributions to the airline’s growth.

Labor Concerns:

The policy changes come amid ongoing HR-related issues, particularly involving a section of Air India Express cabin crew members. These crew members have raised concerns under labor laws, with their case currently pending before the Central Labour Commissioner. This backdrop suggests that the airline is also dealing with internal challenges as it restructures its workforce post-merger.

Industry Competitiveness:

Air India, which is owned by the Tata Group and has been financially struggling, hopes that these revised policies will help improve operational efficiency, reduce costs, and maintain its competitiveness in the aviation sector. The harmonization of policies following the mergers is also aimed at fostering a cohesive work culture among employees of the newly combined airlines.

In summary, Air India’s new policy for cabin crew reflects an effort to standardize compensation and work conditions following the mergers with Air India Express and Vistara. While it introduces cost-saving measures such as room sharing during layovers, it also ensures that international cabin crew members receive enhanced allowances, aligning the benefits with market standards. The ongoing labor issues and performance-linked compensation approach reflect the airline's efforts to balance employee welfare with financial performance.