Budget carrier IndiGo has said that it will have to cut salaries of senior management from May as coronavirus lockdown continues its onslaught on the aviation industry. IndiGo paid full salaries in March and April but now we have to implement pay cuts for senior employees from May, Ronjoy Dutta, CEO, IndiGo, said on Friday, PTI reported. The company has implemented graded leave without pay program for May, June & July, according to a letter shared by Ronjoy Dutta to his employees. The company has earlier rolled back its salary cut announcement in March after the government urged employers to noy cut salaries of their employees.
The financial crunch on airlines is mounting and IndiGo is not the only carrier which has announced pay cuts for employees. Merely few days earlier, Tata SIA joint venture Vistara also asked its top management to go on leave without pay for a few days in May and June. On Tuesday, Vistara CEO Leslie Thng directed top management of the airline to go on compulsory leave without pay (LWP) for up to four days each in the months of May and June, PTI reported. The airline is looking to conserve cash in the testing times as aviation industry has got virtually zero revenues for over a month now due to nationwide coronavirus lockdown. The government had earlier put travel restrictions making the aviation industry one of the worst hit sectors. Most domestic airlines are now looking for ways to tide over the crisis.
Earlier, Minister of Civil Aviation Hardeep Singh Puri had said that his “heart goes out” to those who are suffering because of the crisis and assured that the government will lift travel restrictions as soon as it is confident that the coronavirus situation is under control.