News: 'No pay cuts and leaves deductions’: IndiGo CEO

Compensation & Benefits

'No pay cuts and leaves deductions’: IndiGo CEO

IndiGo’s CEO, Ronojoy Dutta assured employees that neither their salaries nor leaves will be deducted because of the temporary suspension of operations.
'No pay cuts and leaves deductions’: IndiGo CEO

Budget carrier IndiGo has assured its employees that it will not make any deduction in their salaries or leaves due to the suspension of domestic flights till March 31st.

IndiGo would be spending its cash reserves on salaries and benefits. The airline last week implemented a top-down 5%-25% pay cut across its staff. The government's decision to suspend domestic flight has come into effect from midnight Tuesday, as part of larger efforts to curb spreading of coronavirus infections.

In a communication to his employees, IndiGo CEO, Ronojoy Dutta said the company has "reasonable" level of advanced bookings for April and it was "anxious'' to fly again albeit with a reduced capacity.

Dutta also added, "For those who don't have to be working during this temporary suspension of operations, we will make no deduction of salaries or leaves.”

Further, he added, "let us also be acutely cognizant of the fact that during this temporary suspension of operations, we will be spending our cash reserves to continue to pay salaries and benefits".

Once this crisis is over, the airline plans to redouble its efforts to rebuild these cash reserves.

The nation has been locked down for the next 3 weeks and there must be a lot of thoughts going around about whether the world of work is at all ready to fight the upcoming challenges that not only the airline industry but other industries will be facing. 

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Topics: Compensation & Benefits, #COVID-19

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