Air India continues on its path of transformation

Close up of engine of Air India Boeing 787 Dreamliner.
Olivier Cleynen, CC BY-SA 3.0, via Wikimedia Commons

Air India, which has been progressively working to rebuild its image, has been in the news lot lately with details of all the changes it is bringing in to make the transformation possible.

From placing big orders to refurbish their old aircraft fleet, the airline is going all in to achieve this facelift, and hopefully by end of its 5 year transformation program,  it will have changed its image in the mind of fliers.

Re-vamp of compensation structure

Air India has now announced a complete revamp of its compensation structure for all its non-flying staff. Air India currently has roughly around 16,000 employees out of which 7,000 employees come under non-flying staff whereas the rest 9,000 under “flying staff “

The airline also announced that introducing “Performance-linked variable pay” which will depend on both the individual’s performance in the financial year as well as the overall company’s performance for that year.

“The new grades and designations have been arrived at after a comprehensive formal job evaluation to assess the size and complexity of each role, which have then been benchmarked against external companies so that the grade and associated compensation is aligned with market standards.”

“This variable component will be directly linked to both the company’s and each individual’s performance in a financial year, and will be based on clearer job descriptions that provide well-defined goals, KPI’s and accountabilities” said Air India CEO and Managing Director Mr. Campbell Wilson.

This change in pay scale came into effect from 1 April, 2023 and for the employees who were a part of company before privatization, they will now follow Cost to Company (CTC) structure, in which they will receive fixed pay and performance linked bonus.


They also added that the employees who decided to opt for voluntary retirement will not be eligible for any of these changes.

Recent customer dissatisfaction

In other news from Air India, flight AI 186 flying from Vancouver to Delhi on 2 July, 2023 was initially delayed for almost 6 hours, only to be cancelled later by the airline by what was described as “engine issues”.

This left hundreds of passengers stranded at the airport, and several took to social media to express their frustration with the airlines service.

The airline said that it arranged for some of the passengers to fly with different airlines, whereas the others were offered alternate flights to reach the destination, and Air India’s staff provided all the assistance required to passengers on ground.

However, some students on-board this flight alleged that the airline did not provide any assistance whatsoever and they were forced to return to the airport after 11 hours to board their alternate flight.

Though flights being cancelled due to technical issues is not an uncommon occurrence in the aviation industry, Air India has constantly been in the news for such cancellations and delays owing to many reasons, particularly on their long-haul flights.

By AviationSource News 4 Min Read
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