GoAir is one of the many airlines which is struggling to stay on its feet after the lockdown's been implemented. The loss of revenue has put the airline in a major row with maintaining its cash flow position. Every other airline in India is looking for cutting down on costs, and GoAir is one of them. The airline has decided to cut down on its expenses for the time being. For which, GoAir staff is going to face the heat. Employees of the airline have been asked to go on leave, but the catch is, without any pay.
GoAir Cutting Down On Salaries Not a New Thing
GoAir cutting down on salaries doesn't surprise anyone. Earlier this month, the airline deferred on the monthly salary payment to its employees. Before this, the airline decided that top-level employees of the airline will face a salary cut of up to 50%. GoAir, however, decided that the low-level employees won't be affected by the salary cut. AirAsia also decided to cut down on the salaries of its employees instead of cutting down their jobs. This is to protect their livelihood in the long-term. This is a route which most of the airlines are seemingly going.
Millions Of Jobs At Indian Aviation Still At Risk
It is estimated that around two million jobs in Indian aviation are still at risk. Every airline is looking to cut down its cost in some way or other, but the issue with an extended lockdown period is that it becomes even harder for the airlines to sustain. This can likely result in a few airlines cutting down on the number of employees they have for a temporary period. Indian aviation is going to lose $8.8 billion in revenues in the coming time, and this is going to take a toll on the airlines.
