Unpredictable DGCA
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Home > India > Business > Business Headline > Report
Aviation staff set to get peanuts in salary hike
Manisha Singhal in Mumbai | April 30, 2008 01:00 IST
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After hikes of 20-25 per cent in salary last year, aviation industry executives say increments, including those of pilots and executives, are not expected to be more than 3-6 per cent this year.
Most major carriers -- barring Deccan (which has a August-September financial year) and Kingfisher airlines -- do not agree on the figure.
Hitesh Patel, executive vice-president, Kingfisher, said, "We have not yet decided on our increments but will follow the industry benchmarks."
Manpower costs add up to 14 per cent of the total cost for airlines as compared with six to eight per cent for other sectors. Manpower costs have risen in excess of 100 per cent over the past four years, according to HR executives in airlines.
"We might be looking at a figure of six per cent as an annual raise this year," said an executive at one of the private carriers not wanting to be named. Insiders at low-cost carriers peg the rise at three per cent.
"Post 9/11, airlines handed a token sum of Rs 500 as raise. In the present scenario, the airlines are bleeding and there is little difference between a raise of zero or three per cent. So, some of the carriers might decide against a raise this year," said an HR executive.
Analysts say that companies are looking at reducing their manpower costs in order to tide over losses of $1 billion expected by the financial year-end.
And while they have no control over fuel costs, which have hit new highs (they constitute for 45% of the total operational cost), they have no choice but to trim other costs where there is some leeway still.
"Due to cost pressures, airlines would be looking at cutting manpower costs as there is little likelihood of a rationalisation in the cost of aviation turbine fuel. So, reducing staff costs is an option airlines will consider," said Aniket Mhatre, aviation analyst at brokerage firm Prabhudas Liladhar.
"With foreign airlines entering Indian skies, wage demands have become internationally competitive. As a result, our manpower costs have gone up by 100 per cent over the past three-four years. Employee costs are a major concern with airlines today," said S Chalke, senior general manager (HR), Jet Airways [Get Quote].
The pressure on salaries is due to two reasons. First, the overall costs are going up even as carriers are unable raise revenues by hiking fares due to excess capacity. On the other hand, the shortage of co-pilots, cabin crew, engineers is now more or less over.
Commercial pilot licence holders are exceeding the required number. For an industry demand of 3,000, there are now 5,000 CPL holders waiting in the wings.
"Six months back, we received 600 applications for first officers against a small number of openings. Now, we have received 200 applications and we are not even looking out for first officers," said a senior executive with Jet Airways.
Similarly, cabin crew academies have created more trained people than were earlier available for hiring," said a Simplifly Deccan executive.
Many carriers are delaying the delivery of new aircraft and toning down their growth plans in order to reduce losses.
Hence, the pressure of hiring and the yawning gap between demand and supply is also easing out.
"Earlier, projected manpower scarcity was pushing wages up. Now, due to the surplus employee situation, airlines cannot afford to increase the employee costs too much," said Kuljit Singh, partner, Ernst & Young.
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i had written yesterday that salaries will vanish
airlines will offer peanutsin this news now is a word HIKE .....it may vanish soon
Aviation staff set to get peanuts in salary hike
Manisha Singhal in Mumbai | April 30, 2008 01:00 IST
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After hikes of 20-25 per cent in salary last year, aviation industry executives say increments, including those of pilots and executives, are not expected to be more than 3-6 per cent this year.
Most major carriers -- barring Deccan (which has a August-September financial year) and Kingfisher airlines -- do not agree on the figure.
Hitesh Patel, executive vice-president, Kingfisher, said, "We have not yet decided on our increments but will follow the industry benchmarks."
Manpower costs add up to 14 per cent of the total cost for airlines as compared with six to eight per cent for other sectors. Manpower costs have risen in excess of 100 per cent over the past four years, according to HR executives in airlines.
"We might be looking at a figure of six per cent as an annual raise this year," said an executive at one of the private carriers not wanting to be named. Insiders at low-cost carriers peg the rise at three per cent.
"Post 9/11, airlines handed a token sum of Rs 500 as raise. In the present scenario, the airlines are bleeding and there is little difference between a raise of zero or three per cent. So, some of the carriers might decide against a raise this year," said an HR executive.
Analysts say that companies are looking at reducing their manpower costs in order to tide over losses of $1 billion expected by the financial year-end.
And while they have no control over fuel costs, which have hit new highs (they constitute for 45% of the total operational cost), they have no choice but to trim other costs where there is some leeway still.
"Due to cost pressures, airlines would be looking at cutting manpower costs as there is little likelihood of a rationalisation in the cost of aviation turbine fuel. So, reducing staff costs is an option airlines will consider," said Aniket Mhatre, aviation analyst at brokerage firm Prabhudas Liladhar.
"With foreign airlines entering Indian skies, wage demands have become internationally competitive. As a result, our manpower costs have gone up by 100 per cent over the past three-four years. Employee costs are a major concern with airlines today," said S Chalke, senior general manager (HR), Jet Airways [Get Quote].
The pressure on salaries is due to two reasons. First, the overall costs are going up even as carriers are unable raise revenues by hiking fares due to excess capacity. On the other hand, the shortage of co-pilots, cabin crew, engineers is now more or less over.
Commercial pilot licence holders are exceeding the required number. For an industry demand of 3,000, there are now 5,000 CPL holders waiting in the wings.
"Six months back, we received 600 applications for first officers against a small number of openings. Now, we have received 200 applications and we are not even looking out for first officers," said a senior executive with Jet Airways.
Similarly, cabin crew academies have created more trained people than were earlier available for hiring," said a Simplifly Deccan executive.
Many carriers are delaying the delivery of new aircraft and toning down their growth plans in order to reduce losses.
Hence, the pressure of hiring and the yawning gap between demand and supply is also easing out.
"Earlier, projected manpower scarcity was pushing wages up. Now, due to the surplus employee situation, airlines cannot afford to increase the employee costs too much," said Kuljit Singh, partner, Ernst & Young.
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i had written yesterday that salaries will vanish
airlines will offer peanutsin this news now is a word HIKE .....it may vanish soon
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the FATA rule has been taken away because of the Indigo...they get all the expat FO's from US and the Indian Commercial pilots dont have jobs....this was complained by a lot of ppl and then DGCA had to put an end to this.
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All expat FO΄s in IndiGo from US ? You basically have no idea of what you΄re talking about.
By the way, I heard that a year extension is more than probable..any updates on this?
Regards!
By the way, I heard that a year extension is more than probable..any updates on this?
Regards!
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DGCA ????
This thread has avalanched itself beyond my expectations. I had no intention of bashing up the DGCA or Indian Aviation when I started this thread. Anyhow, I hope that some of the contributions will help make changes in the corridors of Indian Aviation.
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Pilot shortage in India
Airlines need type-rated expat pilots
Air India has a shortage of pilots, particularly those qualified to fly Boeing 777 aircraft. In fact, this shortage of Boeing 777 type-rated pilots has caused India's national flag carrier to temporarily suspend its passenger service between Kolkata and London, a route served by Boeing 777 aircraft. An airline official in Kolkata noted that, if not remedied soon, the pilot shortage could affect Air India flights to Chicago, New York and London from Delhi and Mumbai as well.
Air India, a government-owned carrier, currently employs about 800 pilots, 117 of whom are foreigners. Since there are too few Indian nationals with the needed type ratings and command experience on the Boeing 777, Air India employs ex-pat pilots to fill the vacancies. The Careers page on the Air India website specifies a current need for more ex-pat pilots who are already qualified to fly B777-200/300 aircraft. Online applications for these positions are being accepted now.
So, how did this situation come about? According to an article about the pilot shortage in the Times of India, the current crisis began when Air India's three-year contract with 20 pilots expired this month. Another 10 pilots have just retired. Most of those pilots were Boeing 777 commanders.
An article in The Hindu quoted an Air India spokesman who said that Air India was "expediting the pace of training of pilots and three Captains were turning out every month to fly B-777 aircraft." The carrier also sends young pilots for training to flying schools in the U.S., but this does little to fill the immediate need for experienced aircraft commanders. Thus, the airline is seeking qualified pilots from abroad.
Pilot poaching is another issue that comes into play. The article in The Hindu elaborates:
Some of the senior commanders told The Hindu that despite an unwritten no-poaching pact among airlines in the country as many as 31 pilots left JetLite, formerly Air Sahara, and now acquired by Jet Airways as its low-cost arm, over the past two months, and joined Kingfisher Airlines, which is an on a expansion spree after its promoter Vijay Mallya acquired a stake in Air Deccan.
All these pilots who were operating Boeing 737 will be able to fly wide bodied jets like A-340 after a brief spell of training on simulators. The same pool of trained pilots could have been available to Air India for its B-777 fleet as it would have required just four sessions on simulators. As a majority of pilots are on contracts, there is no question of overtaking anyones seniority, industry sources said.
The Hindu notes that private carriers in India employ ex-pat pilots, too. Jet Airways employs about 100 foreign pilots, IndiGo has 84 foreigners as pilots and Paramount Airways has 11, while cargo carrier Blue Dart has 10 foreign pilots, according to the Civil Aviation Ministry. In addition, some 900 of the 2,500 pilots employed in the civil aviation sector are foreigners. About five per cent are above 60 years and are from the U.S. The retirement age for pilots in India is now 65.
Posted by Bobbie Sullivan of Professional Pilot News Blog
Air India has a shortage of pilots, particularly those qualified to fly Boeing 777 aircraft. In fact, this shortage of Boeing 777 type-rated pilots has caused India's national flag carrier to temporarily suspend its passenger service between Kolkata and London, a route served by Boeing 777 aircraft. An airline official in Kolkata noted that, if not remedied soon, the pilot shortage could affect Air India flights to Chicago, New York and London from Delhi and Mumbai as well.
Air India, a government-owned carrier, currently employs about 800 pilots, 117 of whom are foreigners. Since there are too few Indian nationals with the needed type ratings and command experience on the Boeing 777, Air India employs ex-pat pilots to fill the vacancies. The Careers page on the Air India website specifies a current need for more ex-pat pilots who are already qualified to fly B777-200/300 aircraft. Online applications for these positions are being accepted now.
So, how did this situation come about? According to an article about the pilot shortage in the Times of India, the current crisis began when Air India's three-year contract with 20 pilots expired this month. Another 10 pilots have just retired. Most of those pilots were Boeing 777 commanders.
An article in The Hindu quoted an Air India spokesman who said that Air India was "expediting the pace of training of pilots and three Captains were turning out every month to fly B-777 aircraft." The carrier also sends young pilots for training to flying schools in the U.S., but this does little to fill the immediate need for experienced aircraft commanders. Thus, the airline is seeking qualified pilots from abroad.
Pilot poaching is another issue that comes into play. The article in The Hindu elaborates:
Some of the senior commanders told The Hindu that despite an unwritten no-poaching pact among airlines in the country as many as 31 pilots left JetLite, formerly Air Sahara, and now acquired by Jet Airways as its low-cost arm, over the past two months, and joined Kingfisher Airlines, which is an on a expansion spree after its promoter Vijay Mallya acquired a stake in Air Deccan.
All these pilots who were operating Boeing 737 will be able to fly wide bodied jets like A-340 after a brief spell of training on simulators. The same pool of trained pilots could have been available to Air India for its B-777 fleet as it would have required just four sessions on simulators. As a majority of pilots are on contracts, there is no question of overtaking anyones seniority, industry sources said.
The Hindu notes that private carriers in India employ ex-pat pilots, too. Jet Airways employs about 100 foreign pilots, IndiGo has 84 foreigners as pilots and Paramount Airways has 11, while cargo carrier Blue Dart has 10 foreign pilots, according to the Civil Aviation Ministry. In addition, some 900 of the 2,500 pilots employed in the civil aviation sector are foreigners. About five per cent are above 60 years and are from the U.S. The retirement age for pilots in India is now 65.
Posted by Bobbie Sullivan of Professional Pilot News Blog
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New DGCA Director ???
will a civilian director be able to clean up the corruption corridors in the DGCA ??
DGCA technocrats criticise appontment of non-techie as DG- Airlines / Aviation-Transportation-News By Industry-News-The Economic Times
DGCA technocrats criticise appontment of non-techie as DG- Airlines / Aviation-Transportation-News By Industry-News-The Economic Times
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What a waist
It seems that the appointment has the entrenched bureaucrats screaming, which must be good. He'll encounter a high level of resistance to change. If he's given carte blanche he may do some good up there, but he'll need to almost literally dynamite the place and build it back up (and what a bonfire that place would make!). We'll see.
Last edited by Rotorhead1026; 24th Jul 2008 at 07:23.
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THE worst CAA in the world !!
Many of you folks here on the post are ABSOLUTELY Right ON !! The DGCA is without a doubt the most corrupt, the most STUPID and the most uninformed regulatory agency in the World !!
When I used to work for the FAA many years ago, we wrote a letter to them of a ''serious nature'' and NEVER received a reply back from them.. NEVER !!! WOW !! the ICAO should really look into that as should anyone 'still not corrupt' in the Indian Govt.... ( FAT CHANCE !! )
Also the Indian companies should throw a trantrun of a MAJOR scale and wipe the smile of their stupid face ... POOR SHOW INDEED... VERY UNPROFESSIONAL... (What am I say??? there is no such thing in Indian Govt!!) LSG..
When I used to work for the FAA many years ago, we wrote a letter to them of a ''serious nature'' and NEVER received a reply back from them.. NEVER !!! WOW !! the ICAO should really look into that as should anyone 'still not corrupt' in the Indian Govt.... ( FAT CHANCE !! )
Also the Indian companies should throw a trantrun of a MAJOR scale and wipe the smile of their stupid face ... POOR SHOW INDEED... VERY UNPROFESSIONAL... (What am I say??? there is no such thing in Indian Govt!!) LSG..
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THE worst CAA in the world !!
Many of you folks here on the post are ABSOLUTELY Right ON !! The DGCA is without a doubt the most corrupt, the most STUPID and the most uninformed regulatory agency in the World !! Or as they say in India... Total Chutia !!! Harami !!
When I used to work for the FAA many years ago, we wrote a letter to them of a very ''serious nature'' regarding a violation by an Indian Carrier to JFK... and NEVER received a reply back from them.. NEVER !!! WOW !! the ICAO should really look into that as should anyone 'still not corrupt' in the Indian Govt.... ( FAT CHANCE !! )
Also the Indian companies should throw a trantrun of a MAJOR scale and wipe the smile of their stupid face ... POOR SHOW INDEED... VERY UNPROFESSIONAL... (What am I say??? there is no such thing in Indian Govt!!) LSG..
When I used to work for the FAA many years ago, we wrote a letter to them of a very ''serious nature'' regarding a violation by an Indian Carrier to JFK... and NEVER received a reply back from them.. NEVER !!! WOW !! the ICAO should really look into that as should anyone 'still not corrupt' in the Indian Govt.... ( FAT CHANCE !! )
Also the Indian companies should throw a trantrun of a MAJOR scale and wipe the smile of their stupid face ... POOR SHOW INDEED... VERY UNPROFESSIONAL... (What am I say??? there is no such thing in Indian Govt!!) LSG..
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love sick guy
relax.....and try to enjoy the show,show is on, horror or comedy,
get well and come out of your infatuation.
donot increase your BP, there are already new rules on medical standreds for BP and BMI.
relax.....and try to enjoy the show,show is on, horror or comedy,
get well and come out of your infatuation.
donot increase your BP, there are already new rules on medical standreds for BP and BMI.
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lovesickguy:
getsetgo:
Most likely getsetgo is the DGCA guy in charge of answering emails ...
and NEVER received a reply back from them.
getsetgo:
relax.....and try to enjoy the show,show is on, horror or comedy,
get well and come out of your infatuation.
donot increase your BP, there are already new rules on medical standreds for BP and BMI.
get well and come out of your infatuation.
donot increase your BP, there are already new rules on medical standreds for BP and BMI.
Most likely getsetgo is the DGCA guy in charge of answering emails ...
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this id GETSETGO was made couple of years ago when foreign pilots were looking to come to india,
so i tought this is the perfect ID to encourage/welcome them to see this part of the world.
over the period many are , some are happy and some not so happy ,and most are paddling the boats in the same pond.
keep on
continue approach.......................
getsetgo
so i tought this is the perfect ID to encourage/welcome them to see this part of the world.
over the period many are , some are happy and some not so happy ,and most are paddling the boats in the same pond.
keep on
continue approach.......................
getsetgo
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Lovesickguy
"we wrote a letter to them of a very ''serious nature'' regarding a violation by an Indian Carrier to JFK... and NEVER received a reply back from them."
This my friend is parr for course as far as most of the Indian "organisations" are concerned. You only get a response when it is in their interest for them to do so, or there is something in it for them.
DA
"we wrote a letter to them of a very ''serious nature'' regarding a violation by an Indian Carrier to JFK... and NEVER received a reply back from them."
This my friend is parr for course as far as most of the Indian "organisations" are concerned. You only get a response when it is in their interest for them to do so, or there is something in it for them.
DA
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what i understand is there are few pilots not happy with the job...but still continue to go .......
....let some body else ......let them come in
to see the first hand info about every thing you have been talking about....
....let some body else ......let them come in
to see the first hand info about every thing you have been talking about....
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get set go,
we are talking about aviation, not running a chai stall where you can turnover employees everyday.
all pilots are entitled to their say on this forum in the interest of continued safety, without having to change jobs. there may be some however, who overstep the boundaries. these are quickly put in their place by others.
in aviation, there should be no grey areas. if some appear, they should be quickly removed.
i do believe that the subject in hand is the DGCA, and personally, though they are waking up and heading in the right direction, they do have a long long way to go.
we are talking about aviation, not running a chai stall where you can turnover employees everyday.
all pilots are entitled to their say on this forum in the interest of continued safety, without having to change jobs. there may be some however, who overstep the boundaries. these are quickly put in their place by others.
in aviation, there should be no grey areas. if some appear, they should be quickly removed.
i do believe that the subject in hand is the DGCA, and personally, though they are waking up and heading in the right direction, they do have a long long way to go.
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rdr
When I used to work for the FAA many years ago, we wrote a letter to them of a ''serious nature'' and NEVER received a reply back from them.. NEVER !!! WOW !! the ICAO should really look into that as should anyone 'still not corrupt' in the Indian Govt.... ( FAT CHANCE !! )
when some body writes this he should give some info on the safety issue he reported to DGCA.
share but donot scare others who trying to see this part of the world.
DGCA is improving,it will take its own time to MEET/reach the expectations of every body there is no need to get hypertensive about the DGCA.Thats what i conveyed to LSG.
but when normal processing time of 90days(from the date DGCA recieves application by registered post,there is no hand dilivery,personal visit allowed) for licencing will become 24 hours?
all work is by mail service.
some times mail dilivery never dilivers for months.
wait wait and wait then get frustrated then go for BP control/monitor.
what other improvments you know lets share them.
When I used to work for the FAA many years ago, we wrote a letter to them of a ''serious nature'' and NEVER received a reply back from them.. NEVER !!! WOW !! the ICAO should really look into that as should anyone 'still not corrupt' in the Indian Govt.... ( FAT CHANCE !! )
when some body writes this he should give some info on the safety issue he reported to DGCA.
share but donot scare others who trying to see this part of the world.
DGCA is improving,it will take its own time to MEET/reach the expectations of every body there is no need to get hypertensive about the DGCA.Thats what i conveyed to LSG.
but when normal processing time of 90days(from the date DGCA recieves application by registered post,there is no hand dilivery,personal visit allowed) for licencing will become 24 hours?
all work is by mail service.
some times mail dilivery never dilivers for months.
wait wait and wait then get frustrated then go for BP control/monitor.
what other improvments you know lets share them.
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FLIGHT KNIGHT
ur post........................................................ ............................
Not going to happen
intresting to see who follows whom?
DGCA follows FAA,JAR or ......JAR,FAA FOLLOWS DGCA
Despite a tense relationship with the FAA, US pilots do not have to contend with corruption when it comes to getting their licenses. The FAA is staffed with some of some of the brightest aviation minds - design engineers, veteran pilots, ex-astronauts etc..
It really depends on the quality of the folks running an organisation. So i guess the DGCA will need to clean up and follow the FAA or JAR.
............................................................ ........................................
flight knight
looking at the other threads on this website you are must add some printing/copying proffessionals.
Some good doctors who can doctor the log books.
i look forward to those quality folks........lets share with all those hitech shops.
if you look up in your thread i had explained the problem ICAO countries face in general.
getsetgo
ur post........................................................ ............................
Not going to happen
intresting to see who follows whom?
DGCA follows FAA,JAR or ......JAR,FAA FOLLOWS DGCA
Despite a tense relationship with the FAA, US pilots do not have to contend with corruption when it comes to getting their licenses. The FAA is staffed with some of some of the brightest aviation minds - design engineers, veteran pilots, ex-astronauts etc..
It really depends on the quality of the folks running an organisation. So i guess the DGCA will need to clean up and follow the FAA or JAR.
............................................................ ........................................
flight knight
looking at the other threads on this website you are must add some printing/copying proffessionals.
Some good doctors who can doctor the log books.
i look forward to those quality folks........lets share with all those hitech shops.
if you look up in your thread i had explained the problem ICAO countries face in general.
getsetgo