Survival at stake: IndiGO announces pay cut for employees as coronavirus hits business
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Survival at stake: IndiGo announces pay cut for employees as coronavirus hits business

The pay cut comes after several airlines around the globe asked employees to take unpaid leave or similar pay cuts. The novel coronavirus pandemic has severely hit the aviation industry.

Indian carrier IndiGo’s CEO Ronojoy Dutta on Thursday announced a pay cut for all employees and added that he too will take a pay cut of 25 per cent due to the ongoing turmoil in the aviation industry, triggered by the global novel coronavirus outbreak.

“With the precipitous drop in revenues, the very survival of the airline industry now at stake,” Dutta wrote in a letter informing employees about the pay cut.

The IndiGo CEO said senior vice presidents and other top management will take a 20 per cent pay cut while cockpit crew members will be taking a 15 per cent pay cut.

Not just IndiGo but almost all airline companies around the world have been deeply affected aa countries imposed restrictions on travel and shut down flights in the wake of the Covid-19 pandemic.

Ailing Air India has also announced a pay cut of five per cent for its employees due to mounting financial losses as a result of restrictions. Other airlines in India are also facing deep losses with a sharp jump in cancellations.

Not just Indian airlines but some top global airlines including Lufthansa are suffering due to the current conditions. Lufthansa has already declared that the airline industry will not survive without government aid.

Meanwhile, Emirates Group has asked staff to take unpaid leave earlier this month, although pilots were not included in the request then, reported Reuters.

There are several other in airlines around the world which have been forced to take drastic measures including layoffs. Even then, some airlines may not be able to survive the carnage caused by the novel coronavirus.