Air India will restore its employees' salaries, which were cut during the COVID-19 pandemic, from September 1.
The loss-making airline, which the Tatas took over in January, has also decided to revise the crew layover allowances as well as the meal arrangements from September 1.
Campbell Wilson, the Air India CEO and Managing Director, in a communication to employees said the airline "will be restoring the salary reduction for all employees with effect from September 1, 2022."
While the airline has a lot to do to return to being profitable, "sunsetting most of the COVID measures is an important and welcome milestone," he said.
The COVID-19 pandemic had a significant impact on the travel and tourism industry, including the airline industry. The operators had to resort to cost cutting measures such as salary reductions to manage their financials.
Earlier this month, the airline had also announced that it would allow its pilots to
fly until the age of 65, in adherence to the recent Directorate General of Civil Aviation (DGCA) directive on the same.
Prior to this announcement, Air India pilots would retire at 58 years of age.
Air India also issued a new policy on the post-retirement engagement of pilots in view of the expansion. It plans to retain pilots on a contractual basis for five years, extendable to 65 years.
The carrier issued a workforce policy as it plans to expand its fleet. A committee will screen pilots retiring for an extended engagement in the next two years.
Pilots will receive a letter of intent for post-retirement engagement one year before retiring.
