Salary from 50 - 121 million/month, many pilots still quit their jobs

The 2017 annual report of Vietnam Airlines Corporation shows that the salaries and bonuses of managers, specialists, engineers, and flight attendants last year increased by 10-15% according to their positions and groups of positions compared to 2016. For pilots, their income from salaries and bonuses increased by 5%. In addition, they also receive benefits such as voluntary retirement insurance, new ticket fare exemptions, and bonuses for good flying performance.

A series of Vietnam Airlines pilots have resigned again, sending out distress calls.

A group of pilots have sent a petition to the authorities, claiming that Vietnam Airlines is making it difficult for them to quit their jobs and that if they quit they will have to pay a large sum of money in compensation.

Meanwhile, in 2016, the average salary of Vietnam Airlines pilots was 115.3 million VND per month (nearly 1.4 billion VND per year). This salary also increased by 5% compared to 2015. Accordingly, with a 5% increase, in 2017 the average income of pilots here was about 121 million VND per month (1.45 billion VND per year). However, this is the average level. A Vietnam Airlines co-pilot said that his income was only from 50 to 70 million VND, the increase or decrease depending on the product level per leg. As for captains, the salary is 110 to 150 million VND.

Income table of pilots of 3 Vietnamese airlines

Unit: million VND

By the end of 2017, the airline had a total of 6,708 employees, of which pilots and flight attendants accounted for 41% of the workforce, reaching 2,778 people. This number decreased slightly compared to the same period last year.

Mr. Duong Tri Thanh, General Director of Vietnam Airlines, said that from June 1, the airline will start adjusting salaries to increase. All employees will be subject to the new salary regime, in which, some pilots will receive a 20% increase, and can increase up to 40 million VND per month per person for highly qualified individuals.

In 2017, Vietnam Airlines' revenue reached VND83,554 billion, after-tax profit was VND2,659 billion, up 26.3% compared to 2016.

While the corporation's pilots receive salaries that are considered low compared to other airlines, Jetstar Pacific - a subsidiary of Vietnam Airlines - has more attractive salaries.

Research by PV shows that Jetstar's first officer salary is around 100-120 million VND, captain salary is around 110-160 million VND (depending on flight hours and seniority).

With Vietjet Air (VJC), although its scale of operations and revenue is lower than Vietnam Airlines, the income of its staff, including pilots, is sky-high.

Specifically, Vietjet Air's 2017 annual report said that currently, the average salary of employees is 15 million VND, and that of pilots is 180 million VND per person. In particular, Vietjet's co-pilot salary is fluctuating between 120-140 million VND, and captain is 180-240 million VND (depending on work efficiency and seniority).

In 2017, the airline had a total of 3,162 employees, an increase of 26% compared to 2016. This included 499 pilots, 1,046 flight attendants and 592 aviation engineers. Last year, the airline's revenue reached 42,303 billion VND, with after-tax profit of 5,074 billion VND, an increase of 254.3% compared to 2016.

Explaining the salary and bonus system, the leader of Vietnam Airlines said that the airline is a state-owned enterprise, so the salary must be based on general regulations. If there is any adjustment, there must be a roadmap and it must be approved by the Ministry of Transport. Currently, in the salary review process, the salary for pilots is given the highest priority and is continuously adjusted.

Previously, a series of Vietnam Airlines pilots sent a petition with 16 signatures directly to Deputy Prime Minister Truong Hoa Binh, reflecting on the national airline's violation of the Labor Law. In the petition, the pilots analyzed the shortcomings in Circular 41 of the Ministry of Transport that violated the Labor Law, causing difficulties for those who wanted to resign.

At the meeting between pilots and the Corporation's leadership on May 30 to resolve problems, the issue of low salaries and bonuses was discussed by representatives of the pilots.

This is not the first time Vietnam Airlines has faced protests from pilots over low pay. Previously, in 2015, many pilots from the airline called in sick and quit. At the end of 2017, Jetstar Pacific itself had nearly 10 pilots call in sick and quit, then move to work for other airlines.

In Asia, four years ago, Thailand’s national carrier Thai Airways (THAI) faced a similar challenge. In the five years to 2014, it lost more than 200 pilots, as rival airlines offered higher salaries. At that time, the airline had about 1,350 employees.

THAI Deputy Director Montree Jumrieng said that major airlines, especially from the Middle East, and low-cost airlines pay their pilots quite well. Japan Airlines is said to pay up to one million baht a month. Middle Eastern airlines, such as Emirates, pay around 700,000 baht. Meanwhile, THAI pilots only receive around 240,000 baht, (about 156 million VND - 2014 exchange rate) excluding flight hour allowance.

As for Singapore Airlines (SIA), Straits Times cited data from the end of 2016, saying that if they performed well, captains of this airline could earn 18,000 - 20,000 USD (400 - 450 million VND) a month. However, this level is still low compared to many other airlines in Asia. That year, this airline also faced a similar situation, when more than 20 pilots quit to work for rival Hainan Airlines, which offers flexible leave and a monthly salary of about 25,000 USD (565 million VND).

Thi Ha - Ha Thu