Pilots offered Rs. 1L to not leave Go First: Report
Struggling to retain employees, cash-strapped airline Go First has credited salaries for the month of April, according to CNBC-TV18. While employees, including the ground staff and cabin crew, received their salaries, the pilots were reportedly offered a Rs. 1 lakh raise, and first officers a Rs. 50,000 raise to stay with the airline, which is also mulling over a longevity bonus.
Why does this story matter?
The Wadia Group-owned low-cost airline is struggling to restart operations after filing for bankruptcy voluntarily earlier this month. Although the National Company Law Tribunal (NCLT) granted bankruptcy protection to Go First, doubts over its operational ability linger as its lessors have terminated lease agreements and are also engaged in legal battles against the bankruptcy court's decision favoring Go First.
Hike to come into effect from June 1: Report
Go First's retention allowance will reportedly come into effect on Thursday. The allowance will also be offered to those who have quit the company but are ready to withdraw their resignations by June 15. The pilots with Go First, previously GoAir, earn around Rs. 5.3 lakh per month. In comparison, those with budget airline SpiceJet—which hiked salaries twice recently—earn around Rs. 7.5 lakh monthly.
DGCA gave Go First 30 days to submit revival plan
Last week, the Directorate General of Civil Aviation (DGCA) gave Go First 30 days to furnish its revival plan, including the number of pilots it has. In an email to employees, it said, "If things shape up as per the present progress plan, it won't take long before we will be flying again which will also enable us to be regular on salary payments."
Aviation sector facing staff shortage globally
Reportedly, the aviation sector is facing a global shortage of staff while trying to put the pandemic behind it. India's biggest air carrier, IndiGo, plans to recruit 5,000 workers in 2024, while Air India plans to hire 4,200 cabin crew and 900 pilots this year.
