IndiGo CEO Ronojoy Dutta has announced pay cut for all employees and will himself take 25 per cent cut in salary. The move comes in light of the unprecedented loss that airlines all over the world are suffering due to the global outbreak of Covid-19. Most likely to join the same is state-owned airline Air India which is also planning pay cuts of up to 5 per cent.
The reduction will be across the board, they say. The loss-making airline, which is in the process of the second attempt of privatization after failing to get a single buyer nearly two years ago, has already taken some steps such as reduced flying allowances to cabin crew besides withdrawing entertainment allowance to executive pilots, among others.
Air India is considering a5 per cent pay cut to its employees as it faces huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations save the US, Canada and a few other markets, to the ground," a source told PTI.
According to another source, privy to the development, the carrier has also decided to take off from flying its over 100 reemployed pilots on contract as part of various cost-cutting measures.
As countries implement border lockdowns and travel restrictions, airline companies are currently facing the worst loss. Several Indian airlines have temporarily suspended their international operations and have made adjustments to their domestic routes.
(With inputs from PTI)