Coronavirus: IndiGo Announces Pay Cut For Employees, CEO Ronojoy Dutta To Take 25% Salary Cut

IndiGo airlines has announced pay cut for all employees in view of the coronavirus scare and worsening economic situation. IndiGo CEO Ronojoy Dutta will himself to take a pay cut of 25 per cent. This decision comes after IndiGo's flight operations chief Ashim Mitra has sent out an email to the pilots on Thursday morning warning them of some tough decisions to be taken in the near future.

"Economic environment in aviation sector has deteriorated significantly and it has become necessary to initiate some tough decisions over the next few days and weeks," Mitra has written. Mitra stated in his email: "Economic environment has deteriorated significantly and no airline is insulated from this severe downturn."

"It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks."

Asking the pilots to not believe any hearsay, Mitra added that the airline will keep them updated. "Please keep taking all the precautions against COVID-19 and we shall overcome any challenge as long as stand strong and tall against these headwinds," he said.

According to another report, Air India may also cut salary of employees by 5 per cent amid its growing financial woes particularly in the wake of the coronavirus pandemic. According to sources, the reduction will be across the board. According to another source, Air India has also decided to take off from flying its over 100 reemployed pilots on contract as part of various cost cutting measures.

On Tuesday, the airline had issued a circular stating that it is withdrawing entertainment allowance to executive pilots. It also said that all cabin crew including on contract rostered for flying duties from April 1 will have revised layover allowance of USD 100 for 30 hours and after that USD 4 for every additional hour. In case of ultra long haul flights, it has been revised to USD 140 for 30 hours and after that USD 6 for every additional hour of flight. The fuel allowance is also being cut by 10 per cent for six months, effective April 1, it said.

(With PTI Inputs)