Coronavirus impact | IndiGo cuts salaries, CEO Ronojoy Dutta to take home 25% lesser pay - Mr and Mrs Tamilan
Coronavirus impact | IndiGo cuts salaries, CEO Ronojoy Dutta to take home 25% lesser pay - Mr and Mrs Tamilan
Due to the 'precipitous drop in revenues' domestic airline IndiGo has announced that it will cut employee salaries, including that of the CEO Ronojoy, by up to 25 percent starting April 1, 2020, the airline's CEO told employees in a mail.
Moneycontrol has seen a copy of the mail sent on March 19.
In the mail, Dutta said, "With the precipitous drop in revenues, the very survival of the airline industry is now at stake. We have to pay careful attention to our cash flow so that we do not run out of cash."
This, he added, means that there is a need to reduce costs in line with the drop in revenues.
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"With a great deal of reluctance and a deep sense of regret we are, therefore, instituting pay cuts for all employees excluding bands A and B, starting April 1."
He noted that he is personally taking a 25 percent pay cut.
The company on March 18 also told pilots that they may no longer be required to do extra hours and that the airline is withdrawing the incentive of giving compensation in lieu of leave.
On the other hand, domestic carrier GoAir also said in a statement on March 18 that it has been forced to terminate the contracts of expat pilots, a move which it said is in line with the reduced international capacity.
Source: https://www.moneycontrol.com/news/business/coronavirus-impact-indigo-cuts-salaries-ceo-ronojoy-dutta-to-take-home-25-lesser-pay-5050651.html