India’s private airline IndiGo stated that it would be implementing pay cuts of up to 35 per cent for its senior employees to reduce its cash flow amidst the COVID-19 pandemic crisis. The move comes a week after IndiGo, the country’s largest private airline announced it will lay off 10 per cent of its staff as the pandemic has forced it to re-evaluate its “best-laid plans”.
According to reports, in an e-mail on Monday, IndiGo CEO Ronojoy Dutta told employees, “I will increase my personal pay cut percentage to 35 per cent. I am asking all senior vice presidents and above to take a 30 per cent pay cut, all pilots will see their pay cut percentages increased to 28 per cent, all vice presidents will take a 25 per cent pay cut and associate vice presidents will take a 15 per cent pay cut.” (Source : NDTV.com)
Such increases in pay cuts would come into effect from September 1.
IndiGo had already implemented pay cuts of up to 25 per cent for its senior executives, from May. Before Monday’s announcement, CEO Mr Dutta had taken a 25 per cent cut in salary and for senior vice presidents, the pay cut would be 20 per cent, for vice presidents it was 15 per cent and for associate vice presidents it was 10 per cent.
In May, IndiGo had also cut the salaries of Band D employees and cabin crew members by 10 per cent, and of Band C employees by 5 per cent though the salaries of employees in Band B and Band A were not touched. Majority of the employees of the airline are in Band B and Band A. As a matter of fact, Monday’s announcement does not affect the cuts instituted in the salaries of Band D employees, Band C employees and cabin crew members in May. Moreover, no cuts were announced for Band B and Band A employees.
In the month of may, IndiGo had also implemented a compulsory leave without pay (LWP) scheme for its employees for up to five days per month. In August, the LWP was increased to 10.5 days per month.
