Indigo cuts employees salary: IndiGo CEO Ronojoy Dutta announces pay cut for all employees, to himself take a 25% salary cut

IndiGo CEO Ronojoy Dutta today announced a pay cut for all employees, with a 25 per cent cut in his own salary. This comes in the wake of a severe hit in the aviation industry owing to travel bans imposed by the government to contain the spread of the coronavirus.

“With precipitous drop in revenues, the very survival of airline industry now at stake,” Dutta said.

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, said IndiGo’s flight operations chief Ashim Mitra to pilots in an email on Thursday morning.

With countries sealing their borders partially or fully across the world due to the novel coronavirus pandemic, aviation sector has been hit extremely hard as most airlines globally have drastically curtailed their flight operations.

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,” Mitra said.

Senior vice presidents of the company and positions above that will be taking a 20% pay cut, while vice presidents and cockpit crew will be looking at a 15% reduction.

GoAir on Wednesday said it has terminated contracts of expat pilots amid curtailed operations due to the pandemic.

Source Article