After Laying Off 10% Workforce, IndiGo Plans ‘Deeper’ Pay Cut of up to 35% For Senior Employees

New Delhi: Hit hard by the coronavirus lockdown, IndiGo on Monday said it is planning to implement deeper pay cuts of up to 35 per cent for its senior employees in order to reduce its cash outflow. Also Read – IndiGo Pilot Delivers In-Flight Announcement in Tamil, Leaves the Internet Impressed | Watch Viral Video

Prior to this, the airline had from May implemented pay cuts of up to 25 per cent for its senior employees. Also Read – Vande Bharat Mission Phase 4: 1197 Flights Scheduled This Month in 29 Countries, 34 Airports in India, Says MEA

The development comes after the airline had on July 20 announced that it would lay off 10 per cent of its workforce due to the economic crisis caused by the pandemic. Also Read – After Air India, IndiGo to Lay Off 10% Workforce Over Economic Losses Faced in COVID-19 Lockdown

Writing an e-mail on Monday, IndiGo CEO Ronojoy Dutta told employees, “I will increase my personal pay cut percentage to 35 per cent. I am asking all senior vice presidents and above to take a 30 per cent pay cut, all pilots will see their pay cut percentages increased to 28 per cent, all vice presidents will take a 25 per cent pay cut and associate vice presidents will take a 15 per cent pay cut.”

The airline mentioned that the increased pay cuts will come into effect from September 1. The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic.

Apart from IndiGo, other airlines in India have taken cost-cutting measures such as pay cuts, leave-without-pay and lay-offs in order to conserve cash.

The airline had in May cut the salaries of Band D employees and cabin crew members by 10 per cent, and of Band C employees by 5 per cent.

Salaries of employees in Band B and Band A were not touched. Majority of the employees of the airline are in Band B and Band A.