New Delhi, March 19 (IANS) Battered by the global outbreak of coronavirus infections, airline major IndiGo has decided to institute pay cuts for a majority of its employees.
Accordingly, IndiGo's Chief Executive Ronojoy Dutta conveyed the management's decision to the employees via an email which was reviewed by IANS.
“I am afraid that the impact of the coronavirus on the aviation industry has been particularly severe… governments across the globe have issued travel advisories which have resulted in a virtual shutdown of all our international flights,” Dutta said.
“Domestic bookings too are down by around 20 per cent and it is not clear that the situation will not get worse before it gets better.”
According to Dutta, with the precipitous drop in revenues have put the very survival of the airline industry at stake.
“We have to pay careful attention to our cash flow so that we do not run out of cash. Unfortunately, this means that we have to reduce our costs in line with the drop in revenues,” Dutta said.
“With a great deal of reluctance and a deep sense of regret we are therefore instituting pay cuts for all employees, excluding Bands A & B, starting April 1, 2020.”
“I am personally taking a 25 per cent pay cut, senior vice presidents and above are taking 20 per cent cuts, VPs and cockpit crew 15 per cent cuts, AVPs, Band D along with cabin crew will take 10 per cent cuts, and Band C 5 per cent.”