Indian airline Air India is currently making headlines with new guidelines for the accommodation of its cabin crew during stopovers.
In a major reorganization of its human resources policy, the company has decided that flight attendants on regular flights will have to share hotel rooms, a measure that initially met with considerable backlash among staff. Despite the opposition, however, management decided to maintain the measure with few changes in order to reduce operating costs and create uniform standards with the upcoming merger with Vistara.
New accommodation regulations for flight attendants
Air India introduced the original rule requiring flight attendants to share hotel rooms during stopovers as a cost-effective measure. The reaction from employees was cautious to critical. Cabin crew in particular expressed concerns about rest periods and possible conflicts that could arise from shared accommodation. Employee representatives argued that the rule could affect not only the well-being but also the performance of the crew, especially after long flights or in the event of delayed landings.
Following the internal protests, Air India has now reacted with a slight modification: flight attendants on ultra-long-haul flights, which are particularly physically and mentally demanding, will now receive separate hotel rooms. Cabin managers, who usually have over eight years of experience and are therefore higher up the hierarchy, will also be allowed to continue using single rooms. These new regulations will apply from December 1st and also include unplanned stopovers, for example in the event of a flight diversion where accommodation must be organized at short notice.
Economic background of the measures
In addition to the new room policy, Air India has also increased the overnight allowances for international staff. These have been adjusted from US$75-100 to US$85-135 per night, which is a response to the rising hotel prices in some destinations. At the same time, the airline remains under pressure to further reduce costs and increase profitability. The partial adjustments to the new guidelines show that Air India wants to find a balance between cost optimization and employee satisfaction, but is not considering a complete withdrawal of the new measures.
The savings potential of these new regulations lies in the reduction of hotel costs, which is particularly significant for long-haul international flights. According to industry experts, the airline hopes to significantly reduce operating costs in order to be able to compete with international standards.
Merger with Vistara and its influence on the new regulations
The upcoming merger between Air India and Vistara, which is expected to be completed by the end of this year, also plays a role in the introduction of the new employee policies. The airline is facing the challenge of harmonizing two previously separate operating systems and creating a consolidated corporate structure. The merger with Vistara, which has a modern fleet and a strong presence in the premium segment, is seen as a major step towards strengthening Air India, which has been battling operational problems and financial challenges in recent years.
To make the takeover as smooth as possible, Air India is implementing the changes in stages to gradually bring the staff of both airlines up to the same standards. Industry analysts point out that the merger could bring significant synergies as Air India is acquiring a brand in Vistara that is not only highly regarded by premium customers but also has a high level of operational efficiency.
The merger is also expected to result in a strategic reorientation of Air India. The consolidated fleet, which will operate under the Air India brand, will enable the company to operate a larger international route network while increasing the efficiency of its flight operations. However, the fleet merger does not mean that the airlines will completely lose their identities. Both companies will continue to use different IATA codes, which will keep their operations distinguishable.
The challenges and future prospects of Air India
The introduction of the new regulations and the impending merger mark a crucial point in Air India's recent history. The airline, which was sold by the Indian government and taken over by the Tata Group in recent years, aims to position itself as a competitive airline in the Asian and international markets. However, the latest example shows that the company is still struggling with structural and organizational challenges.
The new rules for cabin crew are part of a broader transformation program aimed at operational efficiency, cost savings and an improved brand image. Experts see the merger with Vistara as a unique opportunity for Air India to establish itself in the premium and business segments and thus become more competitive on an international level.
The key to the future will be how the airline maintains the balance between efficiency and employee satisfaction. Cost optimization by reducing hotel costs is just one example of the measures Air India is taking in this regard. At the same time, the airline will have to pay attention to gaining the trust of its employees and maintaining customer satisfaction through high service quality. The merger with Vistara and the strategic reorientation towards premium customers could ultimately help Air India achieve the long-desired position as the leading Asian airline.