The next financial year would witness the entry of Air Asia, popular for offering lowest airfare as well as full-fledged Tata-Singapore Airlines in the Indian aviation industry. This event has sparked some speculations that the pilots and cabin crew of Indian carriers might migrate to these new players in the market in search of a brighter prospect. The uncertain financial conditions have been a major contributor to this situation that will land the domestic carriers in some problems. However, market-leaders IndiGo seemingly has ironed out these issues even before it has emerged within its staff.
Huge Profit in the Running Fiscal
There was a recent announcement by the popular low-cost carrier (LCC) that it made an incredible 1454 per cent upsurge in its net profit in the running fiscal. During 2012-13, the LCC posted a profit of 993 crore INR, which is huge and has increased the lead from its rivals by a large margin. Recently, due to unavoidable circumstances, IndiGo flight fares were raised slightly. However, this huge profit has provided good scope for the LCC to hike salaries of its pilots as well as cabin crew. If the reports are to be trusted, the salaries of the pilots will be increased by 15 per cent. Also, the hike for its cabin crew would be 80 per cent, both of which will be effective from December.
With some of the global carriers looking to make their foray in the Indian market, it is obvious that the staff of LCC will look forward to these foreign ventures for a better future. Holding them back will be a challenging task for the Indian airlines. Also, travel charges for most airlines like Go Air flight fares have increased in the recent past, which has been mainly done to meet the growing cost of flying. The price hike had not increased the earnings of the crew and another hike is almost unlikely. LCCs will have to come up with a smart tactic to retain their employees in the coming time.