IndiGo cuts employee salaries as coronavirus hits business hard
Budget carrier IndiGo on Thursday announced a pay cut for employees across various levels as an outbreak of the novel coronavirus disease, COVID-19, has affected business. IndiGo CEO Ronojoy Dutta said that he will take the biggest pay cut of 25% adding that it was important for everyone to make some sacrifices. The changes in employee salaries are effective from April 1, 2020.
No pay cuts for Band A, B employees
While Dutta is taking a 25% pay cut, Senior Vice Presidents (SVPs) and above will take a 20% cut. Vice Presidents and cockpit crew will take a 15% cut; Assistant Vice Presidents (AVPs), Band D employees, and cabin crew will take a 10% cut; Band C employees will take a 5% cut. There are no pay cuts for Bands A and B.
'Coronavirus crisis attacks both our health and economic well-being'
In a letter to employees, accessed by CNBC TV18, Dutta wrote, "We need to approach this crisis responsibly and thoughtfully, as it attacks both our health and our economic well-being. I am afraid that the impact of the coronavirus on the aviation industry has been particularly severe." Mentioning travel restrictions imposed across the world, Dutta said, "Domestic bookings too are down around 20%."
'Impossible to fly through this economic storm without sacrifices'
Dutta said that IndiGo is instituting pay cuts with a "great deal of reluctance," adding, "It is impossible for our company to fly through this economic storm without all of us making some sacrifices." He said the airline industry's survival is now at stake.
Dutta also detailed precautions adopted by IndiGo
Dutta also mentioned that the budget flier has directed all cabin crew to wear masks and gloves on international flights and "where appropriate" on domestic flights. IndiGo aircraft, offices and facilities are also undergoing a "higher degree of intensive cleaning," he said. The airline is also reducing layovers in international destinations in line with permissible flight time duty rules.
GoAir terminated contracts of expat pilots
Meanwhile, GoAir on Wednesday said that it has terminated the contracts of expat pilots; a day after it announced its move to suspend international operations till April 15. According to PTI, the national carrier Air India may also cut employee salaries by 5% across the board. The coronavirus outbreak has brought most of the airline's international operations to the ground.
COVID-19 kills nearly 9,000 people across the globe
First detected in China's Wuhan city in December, COVID-19 is caused by a novel coronavirus called SARS-CoV-2. It has killed almost 9,000 and sickened 2 lakh people globally. In India, 168 cases have been reported, out of which, 14 have recovered and four have died. COVID-19 causes flu-like symptoms, including fever, cough, and breathing difficulties. Severe cases witness pneumonia, multiple organ failure, or death.
