SpiceJet, the Gurugram-based Indian low-cost airline, has gone back to paying its employees according to the number of hours they put in at work. That is not all. The Airline has deferred the salaries for May due to the adverse impact of the second wave on travel demand.
Earlier, about 50 per cent of the salaries of the employees at SpiceJet had been deferred in April. In May 2020, the Airline had informed that it would pay the employees on the basis of the number of hours they put in.
Since the aviation industry is once again reeling under the impact of the pandemic in 2021, and traffic has dipped to less than 10 per cent, the Airline has resorted to these extreme measures.
On an average, there are only about 49,000 passengers flying daily.
Situation will only get worse with the Ministry of Civil Aviation (MoCA) capping the capacity for domestic flights at 50%, much lower than the earlier 80 per cent. As per data from the Directorate General of Civil Aviation (DGCA), domestic airlines registered only about 57.25 lakh air travellers in April compared with 78.22 lakh in March.
While salaries for the month of May will be paid by SpiceJet, the amount credited will see up to 35 per cent deferment for some employees. However, the Company also assures that the deferred amount will be released starting second week of June.
The employees in the lower grades will not face any pay cuts.
