Will Hire More Indian Pilots In Cost-Cutting Initiative

Employing nearly 780 Indian and 260 foreign pilots, Jet Airways has developed a plan to reduce operational expenses by hiring more Indian pilots and gradually phasing out foreign pilots. Foreign pilots working for Jet currently earn almost twice as much as Indian pilots.

In addition to 32 pilots laid off last week, Jet is considering terminating 50 more foreign pilots by next month, while hiring 20 more Indian pilots. A senior Jet official confirmed the cost-cutting moves, saying, "We will gradually replace foreign pilots with Indian talent," especially on budget-sensitive non-metro routes, the Economic Times said.

"We are already in talks with Turkish Airlines" for subleasing four Boeing 777 aircraft with cabin and cockpit crew, the official said. "If the agreement materializes, these foreign pilots will continue with the company. Otherwise, they will be phased out."

"Foreign pilots charge a huge salary premium over Indian pilots. The whole model of ATR demands cost control," an airline industry analyst said, adding that the proposed replacement of the foreign pilots makes sense on ATR routes, the money makers for Jet. The operational costs for the 50- to 74-seat ATRs are 40% lower than the larger Boeing and Airbus planes in their fleet.

Last month's announcement by Jet of an operational alliance with Kingfisher Airlines would further reduce operating costs, and could lead to a 40 percent reduction of capacity, further reducing the number of needed pilots.

FMI: www.jetairways.com