Amid coronavirus pandemic, the worldwide aviation sector is severely affected. CEO of Indigo Ronojoy Dutta has announced salary cuts from 5%to up a maximum of 25%. This process will get implemented as a cost-cutting exercise to stabilize the airline operations. Currently, more than 23000 employees work for Indigo. Notably, IndiGo spent Rs 3,210 crore on paying salaries to its employees in the year 2019.
Employees of Indigo received email citing the salary reductions. According to the mail, executives above the senior vice president level would receive 20% reductions. Vice presidents and pilots would have to bear a 15% cut, and employees, including cabin crew, would get a salary with a decrease of 5%-10%. Announcing the pay cut, the CEO of Indigo said that the Coronavirus epidemic has resulted in a substantial reduction in income, putting the airline industry’s existence in jeopardy.
The aviation sector has suffered a lot due to the partial or complete sealing of borders across countries around the world. Several airline companies around the world have already started to cut their aircraft operations drastically. IndiGo, Asia’s largest airline, has witnessed air traffic reduction by 30 percent. At the same time, Vistara, an Indian venture of Singapore Airlines Ltd, is considering delaying the delivery of the first batch of Boeing company 787 Dreamliners.
Moreover, Vistara Airways has temporarily suspended all international flights until 31 March, whereas air India has also suspended its 60_70% of its international flights.
Coronavirus outbreak has so far taken more than 9000 lives worldwide and affected more than 200,000 people worldwide. This outbreak has even termed as a pandemic by the world health organization. In the coming times, several aviation countries of India may have to bear 40–50% losses. British airways have warned that some of their employees may face job termination due to heavy losses. The global economy has deteriorated significantly, and no airline company has survived this decline.