scorecardresearch
Friday, March 29, 2024
Support Our Journalism
HomeEconomyIndiGo cuts salaries of senior employees amid coronavirus pandemic, CEO to bear...

IndiGo cuts salaries of senior employees amid coronavirus pandemic, CEO to bear 25% cut

In an email to employees, CEO Ronojoy Dutta said the airline has to pay 'careful attention' to cash flow so that it doesn't 'run out of cash'.

Follow Us :
Text Size:

New Delhi: IndiGo CEO Ronojoy Dutta announced on Thursday that the airline was instituting pay cuts for senior employees and he would himself take the highest cut of 25 per cent amid the novel coronavirus pandemic that has hit the aviation industry hard.

“With the precipitous drop in revenues, the very survival of the airline industry is now at stake,” Dutta said in his email to employees. “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,” the chief executive officer said.

Band A and B are the lowest brackets in salary class, where most of the employees are.

“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 noted.

The CEO said he knew how hard it was for families to take a cut in “take-home pay”.


Also read: Coronavirus will change how we shop, travel and work for years


 

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular