Low-cost carrier SpiceJet has revised the salary structure of its pilots, who will now get paid depending on the fleet utilisation of the airline. This is the first time that an airline in the country has laid such a condition for remuneration.
In a recent communication sent to its pilots, the airline said that - effective from April 1 and until July 2020 - they would be paid only for the hours flown on the basis of hourly rate, Rs 6,020 per hour.
But, this is subject to, the carrier said, to the company achieving flying capacity of 26,000 hours per month or until either written notification in their regard..."
Moneycontrol has seen a copy of this communication.
SpiceJet further said that the pilots "will be entitled to receive a monthly remuneration of Rs 1 lakh, which shall be paid to you upon the company achieving full capacity operations or earlier." This is also for the period April to July.
From August 1, and again depending on the company doing 26,000 hours of flying, pilots will have a compensation structure under a "21 days' work pattern," the company said. The salary band for captains ranges from Rs 4.51 lakh to Rs 4.96 lakh a month.
"This will mean that a captain will take a hit of Rs 1.5 lakh, as compared to a salary for 30 days," a senior executive from the industry said.
Moneycontrol has reached out to SpiceJet for a comment, and will update the story once the airline responds.
The conditions mean that a SpiceJet pilot could go without a salary even though he or she may have flown during the month.
"While if 26,000 hours is acheiveabe, but what if it's 25950...no one gets paid!" said a senior pilot in the industry, underlining the predicament of the pilots.
"Unfortunately, pilots have no control over the business part, including destinations and frequency. But will have to bare the consequence," the pilot added.
Pilots across airlines, including IndiGo and GoAir have seen their salaries drastically cut, as carriers struggle to cut costs amid the disruption caused by COVID-19.
The carriers had to ground their fleet from March, when the national lockdown was announced. Flights resumed from May 25. But even though the government has allowed airlines to operate one-third of their summer schedule, most of them are operating about 25 percent of their capacity.
In a recent industry webinar SpiceJet Chairman Ajay Singh had mentioned that the company is operating 25 percent of its flights.
GoAir had in May revised the salary structure of its senior pilots, many of whom will see a cut of over 50 percent in their pay. Similarly, senior pilots at IndiGo have also seen a drastic trim of their pay.
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