Campbell Wilson, Air India’s managing director and CEO, on Friday said that a majority of pilots have accepted the new compensation package offered by the carrier last week. The statement assumes significance as the two pilot unions – Indian Commercial Pilots Association (ICPA) and Indian Pilots Guild (IPG) – have urged their members not to sign or accept the revised contract and salary structure offered by the airline.

Wilson also said that the airline is making investments in workplace technology and training as well as in new and improved employee benefits.

“I am pleased to report that 90% of cabin crew and a majority of pilots have received and accepted the new compensation package offered last week, which will be back dated to April 1, 2023,” Campbell said as part of his weekly message to the employees.

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The two unions have maintained that the new contract and salary structure was finalised without any consultation with the pilots and is in violation of the labour practices.

Air India had rolled out a revamped compensation structure for its pilots and cabin crew on April 17 after which the pilots had raised their concerns and said that the entire exercise was carried out unilaterally.

The bone of contention in the revised structure is the condition of the promotion of captains with more than four years of experience in management.

On April 25, the agitating pilots, had even sought Ratan Tata’s intervention in resolving the issue. In a petition, signed by a little over 1,500 pilots, it was alleged that their concerns are not being heard or addressed by the current HR team. This was after the chief human resources manager, Suresh Tripathi, had in a video message tried to assuage the pilots. “I am reaching directly to our flying staff through this platform as currently there is no recognised union at Air India,” Tripathi had said, adding that the contract sent to pilots is a compilation of applicable policies and existing rules.

The carrier had said on Thursday that it will hire more than 1,000 pilots, including captains and trainers, as it expands its fleet and network. “We are offering multiple opportunities and accelerated growth across our A320, B777, B787 and B737 fleet for captains and first officers, as well as trainers,” it had said in an advertisement on Thursday.

The airline, which currently has more than 1,800 pilots, has placed orders for 470 aircraft with Boeing and Airbus, including for wide-body planes.

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The latest Airbus firm order comprises 210 A320/321 Neo/XLR and 40 A350-900/1000. The Boeing order comprises 190 737-Max, 20 787s and 10 777s.

The airline has embarked on a five-year transformation under which it seeks to expand routes, flights and increase market share in both domestic and international segments.

As part of consolidating its airline business, the Tata Group is in the process of merging Air India Express and AIX Connect, as well as Vistara with Air India. Vistara is a joint venture between Air India and Singapore Airlines.