Pilots' body seeks tax relief to stem exodus to Gulf carriers

The Airline Pilots’ Association of India (ALPA India) has urged the Ministry of Civil Aviation (MoCA) to raise five targeted tax measures for pilots with the Ministry of Finance, arguing that the widening post-tax income gap with Gulf carriers is accelerating the loss of experienced aviation professionals from India.

There was no immediate reaction from the aviation ministry at the time of filing this report. HT reached out to the Press Information Bureau for a comment but did not get one immediately.

In a letter to civil aviation secretary Samir Kumar Sinha on September 28, ALPA India sought a formal inter-ministerial recommendation to the Department of Revenue for consideration of the measures in the forthcoming finance bill.

“The civil aviation secretary held a meeting with the pilot group on Monday and the matter was discussed and noted for further considerations," an official aware of the development said.

The proposed measures include raising the transport allowance exemption for pilots from ₹10,000 to ₹30,000 a month, increasing the duty-free allowance for returning aircrew from ₹2,500 to ₹15,000 per trip, and providing partial tax exemption for flying, per-diem and night-halt allowances.

ALPA India linked its demand to concerns the government itself expressed before the International Civil Aviation Organisation (ICAO) in August 2025 over foreign carriers recruiting trained Indian aviation professionals.

The association said India would require around 30,000 additional pilots over the next 15-20 years to support aviation expansion, including the regional connectivity network. It argued that retaining the experienced workforce was critical as pilots take years and significant resources for the purpose.

“Tax relief that retains experienced pilots is therefore an investment in MoCA's own policy targets, not merely an industry welfare measure,” the letter said.

According to the association’s estimates, a senior first officer earning ₹5-7 lakh a month in India could have a post-tax take-home of around Rs. 3.5-5 lakh, compared with a tax-free Gulf equivalent of about ₹10 lakh. For commanders, it puts the effective gap at around 2.5-3 times, it stated.

“The safety consequence is direct: when experienced captains and senior first officers depart, Indian carriers accelerate command upgrades of less-experienced crew. Average command experience levels - measured in total hours at the time of captain upgrade have been declining across the sector,” the letter read.

The association also said representations seeking similar reliefs had been made to the finance ministry in 2021, 2024 and January 2026, with no substantive response to the earlier submissions. ALPA India, thus, asked MoCA to intervene at the inter-ministerial level.

It also sought year-wise data from the Directorate General of Civil Aviation on pilots obtaining NOCs (no objection certificates) or licence validations for foreign employment from 2020-21, saying this could provide an empirical basis for assessing attrition.