India’s Vistara cuts flights as pilots’ protest over salary revisions

India’s Vistara airline has cut flights following cancellations and delays all week as pilots have been on a strike of sorts over salary revisions. 

Pilots have called in sick to protest the terms of their recent contract that can come into effect following the carrier’s upcoming merger with Air India, causing the airline to cancel 150 flights, while as many as 200 have been delayed since Sunday, in line with local media reports.

Tata Group, which owns a 51% stake in Vistara — the remaining 49% is owned by Singapore Airlines — announced its merger with Air India in November 2022. After merger, Singapore Airlines could have a 25.1% stake in Air India.

In the brand new salary structure, pilots have been awarded a set pay for a minimum 40 hours of flying — earlier the minimum was 70 hours — a source who has been with Vistara for greater than five years told CNBC. The source preferred to stay anonymous as a consequence of the sensitive nature of the topic.

Pilots used to “get the identical amount of cash” whether or not they flew for 10 or 70 hours earlier — despite the fact that the minimum was 70 — the source added. The brand new structure will cut the salary from about $7,400 (for 70 hours but not all the time enforced) to $5,200 for a strict 40 hours, the source said.

Vistara was not immediately available for comment when contacted by CNBC.

Greater than 200 pilots haven’t signed the brand new contract, one other worker at the corporate, who also preferred to stay anonymous, told CNBC. But the primary CNBC source said their salary had been reduced as per the brand new contract which they hadn’t signed.

Pilots got just 15 days to sign the brand new contract, with Vistara’s management sending a “threatening” email on dissidents likely missing out on a one-time payout of $4,000 to $5,000, the primary CNBC source said. 

“We didn’t think this may occur. This will not be something you’d hear from every other Tata company in India,” the primary CNBC source added.

He assured them that the issue can be solved in the approaching days and apologized for poor schedule planning and overwork, local media said.

“Working in Vistara is nothing like what it’s in Singapore Airlines. This may be very sad to say since Singapore Airlines has almost 50% ownership of Vistara,” the primary CNBC source said. 

“The rostering practices are very, very bad. They’ll change your schedules on a whim,” they said. CNBC didn’t immediately receive a response from Vistara when asked about its scheduling processes.

Indian Business Pilots’ Association and Indian Pilots’ Guild said in a press release to CNBC Thursday that the concerns highlighted by Vistara pilots “should not isolated incidents but relatively indicative of systemic issues that stretch across various Tata Group aviation entities.”

Last month, the Directorate General of Civil Aviation slapped Air India with a $95,658 advantageous for violating flight duty time limitations, Reuters reported.

India’s aviation sector has grown by leaps and bounds because the world’s most populous country is about to be the fourth-largest global travel spender by 2030, largely as a consequence of a growing middle-income population that can see a considerable rise in household earnings.