The move is likely to put an additional burden of Rs 170 crore (Rs 1.7 billion) annually at a time when the airlines are making losses due to economic slowdown.
"The NACIL (the holding company of Air India) management has signed a wage accord with its Cabin Crew Officers Association for the period of 1997-2007, assuring them of full benefits with back wages for the past 15-years," a source told PTI.
The average package of these officers after this accord would reach about Rs 2.25-lakh per month from around Rs 1 lakh which they draw presently, the source said, adding, around 900 officers will benefit from this move.
The agreement came at a time when the chairman and managing director, Arvind Jadhav has stressed the need for belt tightening in the airlines.
The package includes enhanced flying allowances and wages as well as guaranteed executive class tickets on duty and on leave, the source said.
"The union has also managed to get a one-time special promotion to the senior manager and deputy general manager grades with retrospective effect from 1997," he said.
The association, on its part, has agreed that the officer grade cabin crew would follow Duty Time Limits and Reset Time Off as stipulated by the regulator, Directorate General of Civil Aviation, the source said.