Air India`s New Compensation Plan: Can it Help Revive Employee Morale?
| Case Code: HROB252 Case Length: 12 Pages Period: 2022-2023 Pub Date: 2023 Teaching Note: Available |
Price: Rs.300 Organization: Air India Industry: Travel & Tourism Countries: India Themes: Compensation Policy, Strategy Implementation, Employee Benefits |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Vihaan.AI: The Five Year Transformation Plan
On September 15, 2022 , nearly a year after been acquired, Air India announced its transformation plan Vihaan.AI. Vihaan in Sanskrit meant ‘the dawn of a new era’. The five year plan was designed to increase..
Revision of Compensation Plan
As part of the Taxiing phase, Air India announced a change in the existing compensation structure effective from April 1, 2023, for pilots and cabin crew..
Opposition by Pilot’s Union
After the announcement of the new compensation plan, the Indian Commercial Pilots Association (ICPA) and the Indian Pilots Guild (IPG) expressed dissatisfaction over the allowances component of the revised structure saying that it would not lead to any effective change in their pay. Together, the two unions claimed to represent 60 to 65 per cent of the pilots at Air India..
Company’s Response
In response to the representation made by the union, an Air India spokesperson stated, “The new compensation structure for pilots and cabin crew is our endeavour to bring in parity among different groups..
Next Steps
On April 06, 2023 Air India announced that it had reached the conclusion of the first phase of Vihaan.AI that focused on addressing legacy issues of the airline at scale and laying the foundation for future growth..
Exhibits
Exhibit I: Financial performance of Air India (2016 to 2021)
Exhibit II: Air India Fleet Comparison
Exhibit III: Letter from Pilots Union
Exhibit IV: Significant Achievements of Taxiing Phase
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