Coronavirus Impact: IndiGo airlines announces ‘deeper’ pay cuts of up to 35% for senior employees from September 1
New Delhi | Jagran News Desk: As the coronavirus is wreaking havoc across industries forcing them to lay off employees or slashing the salaries, IndiGo Airlines on Monday announced that it will be implementing ‘deeper’ pay cuts up to 35 per cent for its senior employees.
The decision was taken to reduce the cash outflow of the air carrier amid the coronavirus pandemic. Earlier in April, IndiGo had announced pay cuts of up to 25 % for its senior employees from May onwards.
The deeper pay cuts came after the airline's announcement on July 20 that it would lay off 10 per cent of its workforce due to the economic crisis caused by the pandemic.
In an e-mail on Monday, IndiGo CEO Ronojoy Dutta said to employees, "I will increase my personal pay cut percentage to 35 per cent. I am asking all senior vice presidents and above to take a 30 per cent pay cut, all pilots will see their pay cut percentages increased to 28 per cent, all vice presidents will take a 25 per cent pay cut and associate vice presidents will take a 15 per cent pay cut. These increased pay cuts will come into effect from September 1”.
In May, IndiGo had also cut the salaries of Band D employees and cabin crew members by 10 per cent, and of Band C employees by 5 per cent. Salaries of employees in Band B and Band A were not touched. Majority of the employees of the airline are in Band B and Band A.
Dutta's Monday announcement does not affect the cuts instituted in the salaries of Band D employees, Band C employees and cabin crew members in May. Moreover, no cuts were announced on Monday for Band B and Band A employees.
The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, leave-without-pay and lay-offs in order to conserve cash.
India resumed domestic passenger flights from May 25 after a gap of two months due to the coronavirus pandemic. However, the airlines have been allowed to operate only a maximum of 45 per cent of their pre-COVID domestic flights.
(With PTI Inputs)
Posted By: Talib Khan