The Directorate General of Civil Aviation (DCGA) had last week given Go First 30 days to submit a revival plan, including details on how many pilots it has.
New Delhi: Crisis-hit domestic flyer Go Airlines India Ltd. plans to raise the remunerations of captains by Rs 1,00,000 and that of first officers by Rs 50,000 per month, according to Bloomberg News. The cash-strapped airline has been trying to salvage its operations after filing for insolvency on 2 May 2023.
The additional pay or the “retention allowance” will come into effect on 1 June 2023, as per an email to pilots seen by Bloomberg News. Those who have already submitted their resignations, but are willing to withdraw them by June 15, will also be given the same offer, the report added. It also said that the airline will soon reintroduce a “longevity bonus” for long-serving staff.
On average, Go First’s captains currently earn about Rs 5,30,000 a month, as per data on AmbitionBox, compared with Rs 7,50,000 at SpiceJet Ltd., which has increased wages twice in recent months.
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The Directorate General of Civil Aviation (DCGA) had last week given Go Air 30 days to submit a revival plan, including details on how many pilots it has.
“If things shape up as per the present progress plan, it won’t take long before we will be flying again which will also enable us to be regular on salary payments,” the airline said in the email to pilots, as per the report.
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Earlier Go Air, Go First was founded by billionaire Nusli Wadia. It filed for bankruptcy on May 2, blaming US engine maker Pratt & Whitney for the grounding of half of its fleet.
The ultra-low-cost airline has liabilities worth around Rs 11,000 crore.
Aviation Sector In India
Globally, the aviation sector is facing a shortage of staff. IndiGo Airlines, the country’s biggest carrier, plans to hire 5,000 workers in fiscal 2024, while Air India Ltd. plans to add more than 4,200 cabin crew and 900 pilots this year.
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In the past few decades, 17 airlines, both domestic and regional, have exited the market because of financial trouble, as per The Hindu. In India, most airline companies do not own entire fleets as their financials do not allow them to shell out huge one-time payments to buy planes but lease them from companies based out of India instead.
