Business

IndiGo announces pay cut for its employees

Photograph used for representational purposes only

Photograph used for representational purposes only   | Photo Credit: S. SIVA SARAVANAN

Worse is, perhaps, yet to come: CEO

IndiGo announced pay cuts for its staff with CEO Ronojoy Dutta volunteering to give up 25% of his remuneration.

“With a great deal of reluctance and a deep sense of regret, we are, therefore, instituting pay cuts for all employees excluding Bands A and B, starting April 1, 2020. I am personally taking a 25% pay cut, SVPs and above are taking 20%, VPs and cockpit crew are taking a 15% pay cut, AVPs, Bands D along with cabin crew will take 10% and Band C 5%. We know how hard it is for families to take a cut in take home pay. But unfortunately, it is impossible for our company to fly through this economic storm without all of us making some sacrifices,” Mr. Dutta wrote to his employees.

The move was necessitated because of a sharp fall in revenue, forcing the airline to pay careful attention to cash flows so that it did not run out of cash.

He said the travel advisories issued by various airlines to check the spread of COVID-19 has resulted in a virtual shut down of all of IndiaGo’s international operations and domestic flights, too, had witnessed a drop in bookings by up to 20%.”

He cautioned his employees that the worse was perhaps yet to come. “It is not clear that the situation will not get worse before it gets better,” he wrote.

GoAir has already announced that it would be asking its staff to go on leave without pay on a rotational basis, while Air India has slashed allowances of its employees.

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Printable version | Mar 30, 2020 12:21:33 PM | https://www.thehindu.com/business/indigo-announces-pay-cut-for-its-employees/article31111354.ece

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