The Finance Ministry has given the go-ahead to Nepal Airlines Corporation (NAC) to increase the flying allowance 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 flying allowance has been hiked based on performance, considerably swelling the pay package of pilots.

As per the revised rates, the allowance of senior pilots flying international routes has been raised to Rs5,500 per hour. For co-pilots, it has been raised to Rs3,500 per hour.

Likewise, on the domestic sector, the flying allowance of senior pilots has been jacked up to Rs4,500 per hour. Co-pilots get Rs1,500 per hour. 

Following the pay revision, a senior pilot flying international routes can draw gross monthly salary of Rs600,000. A co-pilot can draw Rs400,000 per month.

Likewise, senior pilots flying domestic routes can draw up to Rs400,000 per month. Co-pilots flying domestic routes can make up to Rs190,000 per month.

A senior pilot usually accumulates 100 flying hours per month. “The salary structure has been calculated based on 60 flying hours monthly,” said an NAC official. “So, the salary structure may vary based on performance.”

NAC has around 70 pilots flying domestic and international routes. 

The new pay structure will be implemented by the next fiscal year beginning mid-July, said Buddhi Sagar Lamichhane, joint secretary of the Tourism Ministry, who also sits on the NAC board.

“Although the revised pay scale does not match market rates, we are optimistic that it will help retain highly skilled manpower in the company.” The additional pay means NAC will have to bear an extra financial burden of Rs64.61 million annually.

The annual payout for cockpit and cabin crews currently hovers at Rs170 million. 

NAC officials said that the government’s move had come at the right time as private airlines have started poaching pilots with lucrative pay offers.

NAC has also announced it will buy two wide-body jets for which it will require 20 sets of pilots each. “And without a handsome pay offer, no one is going to come to fly NAC’s planes,” said Lamichhane. 

Airline officials say the industry has a deficit of more than 100 captains, 60 percent of them for jet aircraft. Pilot shortage has started to cause a major headache for airlines. Some are even attempting to lure foreign pilots by offering large salaries. 

According to the Civil Aviation Authority of Nepal, there are currently 232 pilots holding airline transport pilot licences (ATPL) for fixed-wing aircraft and 21 pilots for helicopters. An ATPL allows the holder to act as the pilot in command or captain. 

Likewise, the number of commercial pilot licence (CPL) holders is 281 for fixed-wings and 50 for helicopters. CPL is a qualification that permits the holder to act as the pilot in command of a single pilot aircraft, or as co-pilot of a multi-pilot aircraft.

The Finance Ministry had previously turned down a proposal to raise flying allowances saying that it needed the approval of the Election Commission (EC) as the election code of conduct forbids increasing salaries and allowances. 

Tourism Ministry officials had then resent the proposal to the Finance Ministry after getting the green signal from the EC.

Pilot pay rise

- Senior pilot flying international routes can draw gross monthly salary of Rs600,000

- Co-pilot flying international routes can draw Rs400,000 per month

- Senior pilots flying domestic routes can draw up to Rs400,000 per month

- Co-pilots flying domestic routes can make up to Rs190,000 per month