The aviation sector is one of the worst-hit by the current pandemic. Services of all the leading airlines were temporarily stopped. Some of the leading players opted for job cuts and pay cuts, joining the fleet Vistara Airlines has announced that its CEO Leslie Thng will take a 20% salary cut for July-December 2020.
The airline said it is operating with less than 30% capacity and currently getting back to normalcy in operations and network which may take a couple of months.
"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," a Vistara spokesperson said.
The company has also announced that apart from the CEO, Vistara employees will also be taking a pay cut. The rest of Vistara's 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 a 10% pay cut in this period.
"Employees at the junior level (those with monthly CTC equal to or more than INR 50,000) will be affected by a 5% monthly pay cut. 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 continues till December 2020," the statement said.