New Delhi: Amid the coronavirus pandemic, India's largest domestic airline IndiGo and full-service carrier Vistara have announced fresh salary cuts and leave without pay for its employees.
As per the mail sent by IndiGo to its employees, accessed by ETV Bharat, the airline stated, "Effective 1st July, 2020, we will have to implement another 5.5 days of additional leave without pay (LWP) to a total of 10 days LWP for a full time leave program and this would be prorated for other leave programs based on available days."
"There will also be a salary revision for under training transition captains and transition first officers and would be communicated by the HR team," the mail further read.
In response to query raised by ETV Bharat, IndiGo spokesperson said, "IndiGo was one of the few airlines globally to give out full salaries in the months of March and April, despite business disruption. We employed the first packet in May, followed by leave without pay. Giving the current capacity utilisation, we have had to announce further leave without pay for pilots, which is a temporary measure. It will be reviewed on the basis of the changes in our operational capacity."
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Meanwhile, Vistara airlines has also announced a pay cut between five to 20 per cent for next six months for around 40 percent of its employees. The airline said that its CEO Leslie Thng will take a 20% salary cut for July-December 2020.
Vistara spokesperson said, "The ongoing pandemic continues to adversely impact our financial performance, as we are operating on a significantly reduced network since resumption of domestic flights amid low demand. Vistara is making every effort to save jobs of more than 4,000 of its people while conserving cash and pursuing to reduce operational expenditures which includes staff costs."
"From 1 July 2020 to 31 December 2020, Vistara CEO will take a 20% monthly pay cut and the company shall implement graded monthly pay cuts for staff at other levels," the airline spokesperson said.
Vistara statement further read that the CEO will not be the only employee taking a pay cut. The rest of Vistara senior staff including members of the management will take a 15% pay cut every month, while those in mid to junior mid-levels will take 10% pay cut in this period.
"About 60% of our employees are not impacted by the pay cut. This scheme does not apply to our pilots as their Base Flying Allowance was reduced from 70 hours to 20 hours earlier in May 2020 which continue still December 2020," the airline statement said.
