IndiGo implements more salary cuts of up to 35% for senior management

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IndiGo has implemented some other round of pay cuts for its senior management and pilots as its business continues to be affected via the Covid-19 pandemic.

The latest pay cuts which mean the senior management will get between 15 percentage and 35 percent decrease monthly salaries than pre-Covid instances will be implemented from September 1, stated the executive.

India’s largest airline recently additionally decided to lay off 10 percent of its staff.

CEO Ronojoy Dutta has taken an additional 10 percent cut to his salaries. He had earlier taken a 25 percent reduce and will now forego 35 percent of his monthly pay.


All senior vice presidents (SVPs) will take a 30 percent reduce up from 20 percent before, VPs will forego a quarter of their remuneration, up from 15 percent while AVPs will take a 15 percent reduce up from 10 percent before.

Pilots who had been protected from the move of layoffs, will now get their salaries deducted by using 13 percent. The airline has 28,000 staff, 40 percent of which are pilots and crew.

The decisions by using IndiGo, the country’s richest airline which includes half of India’s domestic passengers, casts a dark shadow on its peers at least two of which are struggling for cash.

IndiGo had total money worth Rs 20,377 crore as of end March, more than the combined cash reserves of most peers.

Last month, IndiGo slashed salaries of some pilots by 45 percent and implemented extra furloughs, continuing measures it had commenced in May. The furloughs are until July and the executive mentioned above didn’t specify if they will be extended. Other airlines, to have been taking stern measures to remain afloat.

Air India earlier this month authorized a leave except pay (LWP) scheme for its permanent employees for a duration of 6 months – two years, and extendable up to 5 years. The state-run carrier’s pilot union opposed it on Monday saying it had not been consulted.

IndiGo Air’s 90 percent staff are on leave without pay for at least a couple of months. Vistara in June stated its chief executive will take a 20 percent pay reduce monthly till December. The relaxation of the senior management will take a 15 percent deduction, while these in mid-to-junior stages will take a 10 percent cut till December, it said. Those at the junior level, with monthly salaries of Rs 50,000 and more, will take a 5 percent cut. About 60 percent of employees, including pilots, are expected to be impacted.

AirAsia India slashed pilot salaries through 40 percent for May, June and July and slashed senior management salaries submit that.

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