Money
NAC to hike pilot pay to stem turnover rate
The Tourism Ministry has resubmitted to the Finance Ministry a proposal by Nepal Airlines Corporation (NAC) to increase the salaries and allowances of cockpit and cabin crews in a bid to prevent them from quitting as the national flag carrier has been plagued by high turnover.The Tourism Ministry has resubmitted to the Finance Ministry a proposal by Nepal Airlines Corporation (NAC) to increase the salaries and allowances of cockpit and cabin crews in a bid to prevent them from quitting as the national flag carrier has been plagued by high turnover.
The Finance Ministry had previously turned down the proposal saying that it needed the approval of the Election Commission (EC) as the the election code of conduct forbids increasing salaries and allowances.
Tourism Ministry officials said that they had sent the proposal again on Tuesday after getting the go-ahead from the EC.
If the proposal is approved, a senior pilot will earn up to Rs450,000 per month in salary and allowances, said ministry officials. Currently, senior pilots are paid Rs250,000 to Rs300,000 per month.
“The management has also proposed a significant hike in the salaries and allowances of junior pilots and cabin crew members,” said Tourism Ministry officials.
“The move is aimed at raising pay levels to those of private airlines.”
Concerned by a possible wave of resignations, NAC has asked the government to review the pay structure to retain qualified flying crews.
Government officials said that with new airlines entering the market and existing carriers expanding their fleets, chances of NAC pilots being ‘poached’ were high.
“If NAC does not make the right move at the right time, it could face a severe crew shortage in the near future,” they said.
The proposed remuneration package, however, is still small compared to what private airlines like Himalaya Airlines are offering, officials said.
Meanwhile, NAC has announced that it will buy two wide-body jets, for which it will require 20 sets of pilots each.
“And without a handsome pay package, no one is going to come to fly NAC’s planes,” said Buddhi Sagar Lamichhane, joint secretary at the Tourism Ministry who also sits on the NAC board.
Airline officials say the industry has a deficit of more than 100 captains currently, 60 percent of the demand for jet aircraft pilots.
Pilot shortage has started causing a major headache for airlines. Some have been attempting to lure foreign pilots by offering large salaries.