India’s budget carrier, IndiGo, has promised its employees no deduction in salary during the temporary suspension of domestic flights. The decision was made after the Government order to discontinue all domestic flights from March 24 midnight to March 31.
Ronojoy Dutta, CEO, InterGlobe Aviation, has sent a mail to the employees stating, “For those who don’t have to be working during this temporary suspension of operations, we will make no deduction of salaries or leaves.”
As the next few days will be extremely critical for the airline industry, Dutta said,” For the next few weeks, our revenues will be well below our costs and we will have to make our efforts to penny-pinch and preserve cash.”
As employees, he appealed, “Let us also be acutely cognizant of the fact that during this temporary suspension of operations, we will be spending our cash reserves to continue to pay salaries and benefits.” he said. “Once this crisis is over, the Airline will have to double its efforts to rebuild these cash reserves,” he added.
IndiGo had earlier instituted pay cuts up to 25 per cent for all employees, starting from April 1, 2020. Similar pay cuts or salary freezes can be expected in other airlines as well.