Private airline IndiGo on Monday announced a second round of pay cuts for its employees ranging from between 15% and 35% to tide over the economic fallout of the coronavirus crisis, reported Mint. Besides this, each department has been asked to take a monthly decision on the number of employees to be sent on leave without pay.
Chief Executive Officer Ronojoy Dutta, who is himself taking a 35% salary cut, said “the deeper pay cuts” was a necessary step to adjust the airline’s cost structure to the revenue loss.
Salaries of senior vice presidents of the company will be trimmed by 30% while for pilots it is 28%, Dutta said in an email to the employees. Vice presidents and associate vice presidents will take a salary cut of 25% and 15%, respectively. These pay cuts will come into effect from September 1, reported News18.
This is the second round of pay cuts, after the first one in May.
This came days after IndiGo decided to lay off 10% of its employees. As of March 2019, IndiGo had 23,531 employees on its payroll.
The nationwide lockdown imposed in March to combat the coronavirus led to the suspension of all flight operations. Some domestic air services were allowed to resume on May 25. However, the airlines have been allowed to operate only a maximum of 45% of their pre-Covid domestic flights. IndiGo is still flying only a small percentage of its fleet of 250 aircraft.