Vistara Flight Disruptions Unveil Deep-seated Issues Amid Merger Plans

The disruption, characterized by over 150 flight cancellations and 200 delays between March 31 and April 3, stems from a multitude of factors, chief among them being crew unavailability.

At the heart of the issue lies a contentious new pay structure announced by the airline, mirroring that of Air India, which has sparked widespread discontent among junior pilots. The revamped salary formula significantly reduces the minimum guaranteed flying allowance for First Officers, resulting in substantial pay cuts and mounting frustrations. Moreover, concerns over seniority within the merged entity have added fuel to the fire, further exacerbating tensions among the pilot community.

The flight cancellations stem from various factors, notably a roster crunch highlighted by both pilot sources and Vistara's CEO. This crunch arises from a disparity between the airline's expanding network and the availability of pilots, leading to extensive working hours and stressful flight combinations. Pilots frequently receive calls on their days off, often with just a 12-hour notice, disrupting their stability and lifestyle. Many flights require pilots to stay overnight away from their home base, returning only for their weekly off. The prolonged mismanagement of rosters has eroded the loyalty of pilots who once felt committed to the airline.

Compounding the issue was the introduction of a new pay structure for pilots in mid-February, coinciding with plans for the merger with Air India. This new structure particularly disadvantaged First Officers, prompting discussions among them to protest by reporting sick and refusing to cooperate with unplanned flights. Consequently, the airline experienced a surge in daily cancellations, reaching 10-15 by March 31. Although the CEO denied claims of a protest, citing the typical use of unused sick leave at year-end, he acknowledged that a significant portion of pilots had not accepted the new contract. Nonetheless, he later stated that the vast majority of pilots had agreed to the new salary terms in a press release.

The introduction of a new salary structure at Vistara has sparked significant dissatisfaction among junior pilots, as it reduces the minimum guaranteed flying allowance from 70 hours to 40 hours. This change translates to a substantial pay decrease of ₹80,000 to ₹1.4 lakh from their monthly salary of ₹3.4 lakh. Additionally, senior pilots have expressed concerns about their position in the merged entity, as a unified seniority list is being prepared but not fully implemented.

In response to escalating issues, the airline has announced a temporary reduction in flight operations and plans to utilize larger aircraft such as the Boeing 787-9 Dreamliner and A321neo to accommodate passengers. The Directorate General of Civil Aviation (DGCA) has requested daily updates on flight disruptions and instructed the airline to ensure affected passengers receive refunds and compensation according to regulations. Vistara's CEO, Vinod Kannan, has stated that voluntary flight cancellations will persist until the end of April. Industry insiders estimate that nearly 1,000 flights have been cancelled between March 31 and April 30 to streamline operational efficiency.

The discontentment among pilots has been further fuelled by a roster crunch, wherein the rapid expansion of Vistara's route network has outpaced the availability of pilots. This has led to an unsustainable workload for pilots, characterized by erratic schedules and frequent roster changes with minimal notice. Consequently, a sense of disillusionment has permeated the pilot workforce, leading to a decline in cooperation and an uptick in unplanned leave.

Compounding these issues is the apparent lack of foresight in training planning, resulting in significant delays in pilot upgrades and shortages in critical areas. Delays in training for Boeing 787 Dreamliner's have necessitated the deployment of deputized commanders from Air India, further highlighting the strain on Vistara's operational capacity.

While these disruptions are unlikely to impede the ongoing merger discussions, they underscore deeper cultural and operational challenges within the Tata Group airlines. The merger, intended to streamline operations and enhance competitiveness, now faces scrutiny amidst concerns over leadership dynamics and regulatory compliance.

As Vistara navigates through turbulent skies, stakeholders must address these underlying issues to ensure a smoother integration process and safeguard the airline's operational integrity in the long term.