Faced with severe shortage of pilots, national flag carrier Air-India's low cost carrier Air-India Express is planning to increase their salaries and other allowances by 20 per cent.

"Pilots of the no frill airline are paid Rs 100,000 per month. We plan to increase the salaries to Rs 1,20,00 per month following the completion of the initial one-year probation period," highly placed Air-India sources said.

Besides, the company is also in the process of increasing other allowances including medical reimbursements, leave travel allowances, passage benefits etc.

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Air-India is considering to give some other benefits to pilots who have had a long stint with the company.

"The company is spending over Rs 16 lakh (Rs 1.6 million) for training of a pilot. But it is only recovering 50 per cent of the training cost from them as against 100 per cent by certain other airlines," they said.

At present, Air-India Express is having 32 co-pilots on five-year contract and 22 commandants. Out of 22 commandants, five are Indians, who are on regular pay scale, while 17 are foreign officers on contract basis.

Air-India Express is operating 3 leased aircraft in its fleet and 4 more will join from February to May 2006. In addition to this, the airline will take the delivery of 18 B737-800 aircraft from October 2006 for Air-India's subsidiary Air India Charters Ltd under whose umbrella the low cost airline would be run.

"Once the airline starts taking the delivery of 18 aircraft, the company will return the leased aircraft to lessor. The ideal fleet of Air-India Express is estimated at 20 aircraft operating Gulf and South East Asian destinations," a source said.

Asked about ten co-pilots tendering resignation, a Air-India executive termed as "pressure tactics by pilots" while the company is geared up to meet the growing requirements of pilots.

According to fleet acquisition plans, Air-India Express would require 144 sets of pilots for operating the fleet. One set of pilot comprises one commandant and one co-pilot. An aircraft needs average 7 to 8 sets of pilot.

At present, the airline is having 32 sets. "Air-India Express has already kickstarted recruitment drive and launched advertisement programme too for the purpose. The airline will soon recruit new sets of pilots," a source said.

Air-India Express had launched its operations from April 2005 from Kerala.

• Salary of Rs 1,20,000 monthly after a years probation
• Medical reimbursements, leave travel allowances, passage benefits
• Extra benefits to long serving pilots