IndiGo to boost pilot allowances, weeks after mass flight cancellations

New Delhi: IndiGo has introduced new pilot allowances and raised some existing ones, in a sign India's largest airline is seeking ​to boost pilot morale weeks after mass flight cancellations linked to poor roster planning ‌left passengers stranded.

The airline will increase layover allowances ⁠to 3,000 rupees ($33.37) from ‌2,000 rupees for captains, and to 1,500 rupees from 1,000 rupees for first officers, according to an email sent to pilots by Ashim Mittra, senior vice president for flight operations.

Allowances for "deadheading" - a practice where airline crew travel as passengers to position ​themselves for future duty - will be raised to 4,000 rupees from 3,000 rupees for captains, and by 500 rupees to 2,000 rupees for first officers, the email said.

IndiGo, which according to government data ‌employs roughly 5,000 ‌pilots, did not immediately respond to a request for comment. The airline, which commands a 65 per cent domestic market share, ⁠is facing increased regulatory scrutiny and a competition probe after it cancelled about 4,500 flights earlier this month, leaving hundreds of thousands of passengers stranded all over India and throwing airports into ⁠chaos.

The cancellations prompted India to temporarily relax some rules ⁠around night duty for pilots earlier this month to help the ‌airline stabilise its operations, a move that invited criticism from ‌pilot unions and safety advocates.

A committee appointed by India's aviation regulator to probe the circumstances that led to the cancellations submitted its report last week, the ‍civil aviation ministry has said.

Moody's Ratings has warned that IndiGo could face "significant financial damage" from revenue losses due to cancellations, refunds to customers and penalties imposed by India.

The move to raise some allowances and introduce new ones, effective January 1, came after IndiGo executives visited different bases to hold talks with pilots, Mittra said in the email seen by Reuters. Indian airlines also face competition to prevent pilots being poached by ​foreign carriers, who promise ‌better pay and quality of life, prompting the Indian government to call for a global code of conduct on pilot hiring.