India: Go First offering pilots extra Rs 1 lakh per month as retention allowance
Go First filed for involuntary insolvency on May 2 and announced the suspension of its flights, which was initially for two days but has been in effect till May 30.
The domestic airline now wants to retain its pilots, who instead are looking to leave, and is offering them extra pay to stay back. Reportedly, captains are been offered as much as Rs 1 lakh a month and first officers, Rs 50,000.
Go First is calling this steep climb a retention allowance – expected to come into effect on June 1. Employees who have already resigned but are willing to take back their resignation by June 15 will also be offered the allowance.
Meanwhile, the long-serving staff of the airline will also receive a longevity bonus.
Go First’s captains reportedly earn roughly Rs 5.30 lakh a month on average, compared to Rs 7.50 lakh at SpiceJet.
If things take shape according to the progress plan, it won’t be long before the airline resumes its operations, enabling it to be regular in compensating its staff, as per an email Go First sent to pilots, as seen by Bloomberg.
Shortly after the low-cost carrier filed for involuntary insolvency, Air India, IndiGo, Vistara and other rival airlines put up advertisements for vacancies across departments and the country.
Last week, the Directorate General of Civil Aviation (DGCA) granted Go First a month’s duration to submit its restructuring or revival plan, in addition to asking the cash-strapped airline to submit the status of availability of the operational aircraft fleet, post holders required, and other essential details, before resuming its operations.
Before that, Go First had informed the aviation regulator there is no definite timeline for the restarting of services.
While flights remain cancelled till May 30 owing to operational causes, the airline said the full refund will be processed to travellers impacted by the chaos on their original mode of payment.