This comes after IndiGo's flight operations chief told pilots that the economic environment in the aviation sector has deteriorated significantly, and tough decisions would have to be taken.
IndiGo CEO Ronojoy Dutta announced on Thursday that the airline was instituting pay cuts for senior employees and he would himself take the highest cut of 25% amid the novel coronavirus pandemic that has hit the aviation industry hard. "With the precipitous drop in revenues, the very survival of the airline industry is now at stake," Dutta said in his email to employees. "We have to pay careful attention to our cash flow so that we do not run out of cash." "With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020," the chief executive officer said. Band A and B are the lowest brackets in salary class. "I am personally taking a 25 per cent pay cut, SVPs (senior vice presidents) and above are taking 20 per cent, VPs (vice presidents) and cockpit crew are taking a 15 per cent pay cut, AVPs (assistant vice presidents), Bands D along with cabin crew will take 10 per cent and Band Cs five per cent," Dutta noted. The CEO said he knew how hard it was for families to take a cut in "take-home pay". This comes after IndiGo's flight operations chief Ashim Mitra told pilots in an email on Thursday morning that the economic environment in the aviation sector has deteriorated significantly and it has become necessary to initiate some tough decisions over the next few days and weeks. Mitra stated in his email: "Economic environment has deteriorated significantly and no airline is insulated from this severe downturn." "It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks," Mitra said. GoAir on Wednesday said it has terminated contracts of expat pilots amid curtailed operations due to the pandemic. India has recorded 166 positive cases of the novel coronavirus. The state with the most number of people testing positive for COVID-19 at 47 is Maharashtra. Meanwhile, Telangana recorded seven more cases on Wednesday night. All of them are Indonesians, bringing the total in the state up to 13, including one person who recovered in Telangana earlier. Kerala, which reported the first three cases of COVID-19 in India, has seen 27 cases in all, including three who have recovered. With inputs from PTI
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