The country’s largest airline by market share, IndiGo, on Thursday said it will cut salaries up to 25% as traffic dwindles and capacities are cut, amid the outbreak of coronavirus. In an email to the staff, CEO Ronojoy Dutta said the company will institute pay cuts for most of its employees starting April 1. Dutta himself will be taking a 25% pay cut.
Senior vice presidents and above-grade employees in IndiGo will take a 20% pay cut, while the salaries of vice presidents and cockpit crew will be reduced by 15%. Assistant vice presidents and the airline’s cabin crew will take a 10% pay cut from April. “With a great deal of reluctance and a deep sense of regret we are therefore instituting pay cuts for all employees excluding Bands A & B,” Dutta said. IndiGo’s anticipated decision comes only days after the Wadia Group-promoted GoAir sent some of its staff on unpaid leave. The state-owned Air India is also mulling salary reductions as a part of cost-cutting measures.
