IndiGo has announced new pilot allowances and increased some existing ones, signaling the airline’s effort to enhance morale following a wave of mass flight cancellations earlier this month that disrupted operations across India. The move comes as India’s largest airline, which holds a 65% share of the domestic market, faces heightened regulatory scrutiny and a competition probe.
Effective January 1, the changes were communicated by Ashim Mittra, Senior Vice President for Flight Operations. Layover allowances for captains will rise to Rs 3,000 ($33.37) from Rs 2,000, while first officers will receive Rs 1,500 instead of Rs 1,000.
The airline is also raising allowances for “deadheading”—when crew travel as passengers to position themselves for future duty—to Rs 4,000 for captains from Rs 3,000, and by Rs 500 to Rs 2,000 for first officers.
Operational and regulatory challenges
The allowance revision follows IndiGo’s cancellation of roughly 4,500 flights, which stranded hundreds of thousands of passengers nationwide. In response, the Indian government temporarily relaxed night-duty rules for pilots to stabilize operations, a measure criticized by pilot unions and aviation safety advocates.
A committee appointed by India’s aviation regulator to probe the cancellations has already submitted its report. Meanwhile, Moody’s Ratings warned that IndiGo could face “significant financial damage” from revenue losses due to cancellations, customer refunds, and potential penalties.
Retaining pilots amid intense competition
IndiGo executives recently visited various bases to engage with pilots, according to Mittra. Indian carriers are under pressure to retain talent, as foreign airlines frequently offer higher pay and better work-life balance. The Indian government has also called for a global code of conduct on pilot hiring to curb domestic pilot poaching.
With approximately 5,000 pilots, IndiGo is using allowance revisions and new benefits to stabilize its workforce, ensure operational continuity, and boost morale after the disruptions earlier in December. Analysts note that these changes are a strategic step to maintain pilot motivation while navigating regulatory scrutiny and competitive pressures.
