Amid the coronavirus threat that has taken the IndiGo airlines in its grip, as IndiGo chief executive officer (CEO) Ronojoy Dutta said on Thursday the airline was instituting pay cuts for its senior employees.
Airlines CEO said he will take the highest cut of 25 per cent.
The deadly coronavirus has left a huge impact on the economy, as the companies are assessing its impact on their businesses.
In an email to its employees, Dutta said, “With the precipitous drop in revenues, the very survival of the airline industry is now at stake. We have to pay careful attention to our cash flow so that we do not run out of cash.”
“With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020,” Dutta wrote to his employees.
“I am personally taking a 25 per cent pay cut, SVPs (senior vice presidents) and above are taking 20 per cent, VPs (vice presidents) and cockpit crew are taking a 15 per cent pay cut, AVPs (assistant vice presidents), Bands D along with cabin crew will take 10 per cent and Band Cs five per cent,” Dutta added.
Dutta said he knew how hard it was for families to take a cut in “take-home pay”.
The World Health Organisation earlier had called the coronavirus an “enemy against humanity”, as the number of infected people worldwide rose to 218,631 and claimed 8,810 lives. The Director General of WHO Tedros Adhanom Ghebreyesus told journalists in a virtual news conference, “This coronavirus is presenting us with an unprecedented threat.”
As of now, India has marked 169 cases with 3 deaths. The entire nation is in ‘lockdown’ mode as the government has ordered shut down of public places and advised no public gatherings till March 31.
Prime Minister Narendra Modi has will address the nation at 8 pm today regarding COVID-19.
(With inputs from PTI)