IndiGo implements more pay cuts for senior management, pilots NSE (-4.84%)
MUMBAI: IndiGo NSE -4.84 % has implemented another round of pay cuts for its senior management and pilots as its business continues to be affected by the Covid19 pandemic, said a senior executive.
The latest paycuts—which mean the senior management will get between 15% and 35% lower monthly salaries than pre-Covid times— will be implemented from September 1, said the executive.
India’s biggest airline recently also decided to lay off 10% of its staff.
CEO Ronojoy Dutta has taken an additional 10% cut to his salaries. He had earlier taken a 25% cut and will now forego 35% of his monthly pay.
All senior vice presidents (SVPs) will take a 30% cut up from 20% before, VPs will forego a quarter of their remuneration, up from 15% while AVPs will take a 15% cut up from 10% before.
Pilots who had been safe from the move of layoffs, will now get their salaries deducted by 13%.
The airline has 28,000 staff, 40% of which are pilots and crew.
The decisions by IndiGo, the country’s richest airline which carries 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 cash 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% and implemented additional furloughs, continuing measures it had started in May. The furloughs are till July and the executive mentioned above didn’t specify if they will be extended.
Other airlines, too, have been taking stern measures to stay afloat.
Air India earlier this month approved a leave without pay (LWP) scheme for its permanent employees for a period of six months to two years, and extendable up to five years.
The state-run carrier’s pilot union opposed it on Monday saying it had not been consulted.
GoAir’s 90% staff are on leave without pay for at least a couple of months. Vistara in June said its chief executive will take a 20% pay cut monthly till December. The rest of the senior management will take a 15%
deduction, while those in mid-to-junior levels will take a 10% cut till December, it said. Those at the junior level, with monthly salaries of Rs 50,000 and more, will take a 5% cut. About 60% of employees, including pilots, are expected to be impacted.
AirAsia India slashed pilot salaries by 40% for May, June and July and slashed senior management salaries post that.