Vistara, the Tata Sons and Singapore Airlines joint venture airline, has rolled back the pay cut imposed in 2020 for certain levels of employees. However, the 15 per cent and 25 per cent cuts (for levels 4 and 5) will continue, for executives of the management cadre, including the CEO.
The airline will not pay the annual increment in April this year, but may do so later in October, depending on the financial situation of the airline in the early quarters.
Leslie Thng, CEO, Vistara has stated that the airline’s operating capacity and revenue have yet to reach pre-COVID levels, and therefore, there lay challenging times ahead, with return to normalcy expected to be very slow.
In June 2020, Vistara had announced pay cuts for almost 40 per cent of its workforce up until December 31. The same was extended to March 31, 2021, with demand for air travel not picking up as hoped.
Now, with effect from April 1, salaries will be restored for some employees, while the leadership leadership team will continue to take home reduced salaries.
The airline will continue to control costs and not hesitate to take tough decisions if the situation requires it to, as per the official communique sent to the employees.
Those employees who are eligible for variable performance for FY 2020-21, will receive the same in May, based on the performance of the airline and the individual employees.