New Delhi: IndiGo will be cutting the salaries of senior employees from May onwards. The airline company has also implemented a ‘limited, graded leave without pay programme’ for the months of May, June and July. This was disclosed Friday by the company’s CEO Ronojoy Dutta.
India has been under lockdown since March 25 to curb the coronavirus pandemic. The aviation industry is in complete lockdown with bookings being cancelled until any further orders. As a result, revenues of the Indian aviation industry have been hit hard.
“We had paid employee salaries in full for the months of March and April. Now I am afraid that we are left with no option. We have to implement the originally announced pay-cuts from the month of May 2020,” Dutta told employees through an email.
IndiGo had announced pay cuts for its senior employees March 19. However, it had rolled them back April 23 in deference to the ‘government’s wishes’.
“In addition (to pay cuts), given the gradual build-up of capacity, I am afraid we have to take another additional painful step. We have to implement a limited, graded leave without pay programme for May, June and July,” Dutta added. “This leave without pay will range from 1.5 days to 5 days depending on the employee group. We will make sure that ‘Level A’ employees, who form a majority of our workforce will not be impacted,” Dutta said.
Dutta had announced March 19 that the airline was instituting pay cuts for senior employees. He said he would himself take the highest cut of 25 per cent amid the COVID-19 pandemic.
PTI