No more pay cut for indigo employees
IndiGo, operated by the InterGlobe Aviation Limited, has taken back its decision to implement a pay cut of up to 25% for its employees.
Ronojoy Dutta, CEO of the airlines, in a mail to all its employees, respecting the government’s wishes of not reducing pay during the lockdown, said that IndiGo would not implement the planned pay cut, except for the senior executives who have volunteered.
The corona outbreak resulted in stringent travel restrictions which led to drop in revenue. To cope up with the losses, the chief executive took a 25% pay cut while senior vice-presidents took 20% and vice-presidents and cockpit crew took 15%.
In India, all airline operations are to remain suspended till May 3rd.
Dutta said in the mail that because they have little control over revenues now, they are focusing their energy on cost control. Going forward, they will be sharpening their core competence even more.
A report by Capa India claims that the Indian aviation industry might take losses of $3-$3.6 billion. In fact, FICCI has written to civil-aviation minister Hardeeep Singh Puri for a financial rescue package to help the sector continue operations. The idea includes bringing turbine fuel under GST and a deferment on GST payments by airlines.