Indian airlines are facing massive financial losses due to the outbreak of Covid-19. Nearly all the airlines have slashed employee remuneration to maintain financial stability and ensure uninterrupted services at difficult times. The largest airline of India, IndiGo, is facing substantial financial pressure due to fewer bookings and restrictions. IndiGo earlier announced that it would fire 10% of its workforce to maintain financial stability. Now, the airline has announced that it will slash salaries of top-level management and pilots to revive the airline from losses. IndiGo reported a total cash reserve of Rs 20,377 crore as of March which is way too much than the rest of the airlines operating in India.
IndiGo Will Slash Remuneration of Senior Management and Pilots
The latest pay cuts announced by IndiGo is focused on senior management and pilots. All the senior management will get between 15% to 35% lower monthly salaries which will be implemented from September 1, 2020. The CEO of IndiGo Ronojoy Dutta earlier took a 25% cut in his salary. Now the pay cut has been increased by 10%, and he will forego 35% of his monthly pay. Similarly, all the Senior Vice Presidents will now forego 30% of their monthly payments. As of pilots, IndiGo has announced that all the pilots will now have to forego 13% of their monthly payments. The airline had already slash 45% salaries of some pilots for financial stability amid difficult times.
Air India Will Has Approved Leave Without Pay (LWP) Scheme
State-owned airline Air India recently marked that no employees will be terminated from the jobs in difficult times. However, Air India has earlier approved LWP scheme for its permanent employees for a period of six months to 2 years and further expandable up to five years. Apart from this, all the major airlines like Vistara, GoAir, AirAsia India and more have slashed salaries of their employees and senior management to reduce the financial burden caused by the outbreak fo the deadly virus.