The industry is going through its very own market correction. I think in the next 12 months the dust will settle, and like it or not, the survivors will emerge and the unfortunates will say goodbye. Expats will be here as long as there is a need, simple as that. If DGCA sticks to its guns we will out of here on or before the deadline of mid 2010. There is a possibility that extensions might be provided on a case by case basis.
As I have said many times over, contract flying is stop-gap flying. You have it wrong if you think you will be on a contract with a company for a very prolonged period of time (although it does happen--Middle-East/Japan/Korea). Unlike the ME, India has plently of pilot applicants (many getting their hrs still) it's only a matter of time before the expats leave. The time--could be several years from now, depending on the growth based need. Expats right now are needed but are expensive to maintain. Even if an Indian Capt was paid an expat salary, he/she is still a whole lot cheaper. The airline does not have to pay income taxes on behalf of the pilot or for housing and travel . As a rough calculation, an expat pilot probably is equal to two Indian Capts expensewise. So from a business standpoint it is advantageous to upgrade as many qualified Indians when they are ready. If Indian airlines cut salaries drastically after the expats leave, then they will be shooting themselves in the foot because most of the Capts will happily go to the Middle-East for better terms. That will leave India with yet another shortage of Capts. I don't think they want to go there.
As far as hindering the progress of local pilots. I beg to differ. If you are stuck on a narrowbody because of a "seat/equipment lock" implemented by your airline the expat pilot isn't to blame. It's your airline.
Hopefully you will be payprotected in that if your seniority can hold the wide-body, then you get widebody pay for being bypassed due to the company's requirement. Personally, having flown widebodies, I think I would be quite happy flying a narrowbody for widebody pay
I like being home almost every other day, not having to deal with sleep issues, reduced rest and multiple time-zones. Widebody flying today is very different from what it was like a decade or so ago. In the old days you actually got to enjoy your overnights with more than adequate rest with time to see some of the sights.
From many posts I read today, sadly many trips are minimum rest.
For the disgruntled expat. If you are unhappy in India or anywhere else for that matter, exercise your contract and leave. You will be a happier person.
Some will be unhappy no matter where they go. No help for you unfortunately. As an expat pilot at Spicejet I will say that I have been quite happy here for almost 2 years now. I fully realize that my contract may not be renewed and I hope not to take it personally. So in anticipation of that scenario, I plan to explore my options in India and elsewhere.