Accept new pay structure by EOD: Vistara gives ultimatum to pilots

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Vinod Kannan, CEO, Vistara


Vistara has issued an ultimatum to pilots who have not yet accepted the new salary structure, instructing them to comply by Friday evening. Failure to do so will result in forfeiting a one-time payout and be interpreted as a lack of interest in joining Air India.


Earlier this month, a section of pilots reportedly went on sick leave to protest the new salary structure proposed as part of Vistara’s merger into Air India. On March 7, Vistara denied media reports, clarifying that recent flight cancellations and delays were due to unfavourable weather, air traffic congestion, and unforeseen aircraft maintenance, and could not be solely attributed to pilot absenteeism.

Vistara informed the pilots on Friday that if they do not sign the contract by Friday evening, they will not receive the one-time payment, according to sources. If they reject the offer, it will be deemed that they “do not wish” to join Air India once the merger is finalised and operationalised, and they will not be included in the “transition to Air India,” sources added.


These pilots will also lose their position on the “upgrade sequence list” if they fail to sign the contract by evening, sources noted. An “upgrade sequence list” for pilots typically outlines the order in which they are scheduled for promotions to a higher rank or position within the airline, such as transitioning from a first officer to a captain, or moving to a higher-ranking aircraft type.


Under the new salary structure, Vistara pilots will receive a fixed salary for 40 hours of flying time, in contrast to the current 70 hours. They will also be compensated for extra flying hours and receive an additional amount as a reward based on their years of service with the airline.


The Competition and Consumer Commission of Singapore (CCCS) approved the merger earlier this month. The Competition Commission of India (CCI) gave its approval for the merger between the airlines in September 2023.


Vistara anticipates completing the operational merger with Air India by mid-2025, with legal approvals expected by the middle of the current calendar year, as stated by the full-service carrier’s CEO, Vinod Kannan, at a press briefing in January. Vistara is a 51:49 joint venture between the Tata Group and Singapore Airlines, while Air India is entirely owned by the Tata Group.

First Published: Mar 15 2024 | 7:31 PM IST