May 28, 2012

Pilot hire on AI radar

The management of Air India is exploring the possibility of hiring new pilots after several rounds of negotiations failed to break the deadlock with the striking pilots. The 21-day strike has led to a loss of over Rs 300 crore.

Air India’s board met today to discuss ways to deal with the impasse. With pilots refusing to end their agitation, the board plans to go for fresh hiring.

“The board discussed the present situation and decided that hiring is the only option left. Back-channel talks with pilots are on but nothing has come out of it as of now,” said a senior AI official.

Civil aviation minister Ajit Singh had asked the pilots to join work immediately, assuring them that they will not be victimised. However, protesting pilots insist that the airline should reinstate their sacked colleagues first.


While the Delhi high court has restrained the pilots from continuing their strike, the Bombay high court has slammed the Indian Pilots Guild (IPG) for defying court orders and persisting with the stir, thereby causing inconvenience to the passengers.

The IPG has been at loggerheads with the management over its decision to let erstwhile Indian Airlines pilots to train on Boeing 787 aircraft. The airline has sacked as many as 101 pilots.
The agitation has led to a drop in passenger count. Last week, the airline decided to reduce fares by placing a large chunk of seats under the lowest fare category to increase its share in the domestic and international sectors.

“Bookings on our international flight have stabilised and we have placed maximum number of seats in the lowest price bracket that has also helped bookings in the domestic sector as well in the current contingency plan,” added the AI official.

The Air India board today also discussed the $700-million compensation from Boeing for the delay in the delivery of the Dreamliners. The proposals on the compensation amount and the process of seeking it have been sent to the government for approval, sources said.

The issue of monetisation of Air India’s assets in India and abroad and appointing a real estate consultant was also discussed by the board.