Thursday, March 19, 2020

IndiGo grounds 16 planes; staff to take 10-20% salary cuts

India's largest carrier IndiGo has grounded about 16 planes out of its total fleet of 260 aircraft, says an IndiGo source. The airline is also planning to ask its employees to take 10-20 per cent salary cuts as it grapples with the impact of coronavirus on domestic and international flights.

"The load factors have gone down substantially on the domestic flights. The domestic flights are flying almost half empty, and the passengers on international flights are even lower," says an IndiGo official on condition of anonymity.

Early this week, IndiGo cancelled its Delhi-Istanbul and Chennai-Kuala Lumpur from March 18, 2020 until March 31, 2020. The airline has already cancelled flights between Bangalore-Kuala Lumpur until March 31, 2020 and Delhi-Kuala Lumpur until April 30, 2020. Till March 6, IndiGo had cancelled 42 weekly flights to destinations such as Singapore, Bangkok, Guangzhou, Chengdu, and Hong Kong owing to coronavirus and travel restrictions. Additionally, the LCC (low-cost carrier) has announced cancellation of flights between Mumbai-Jeddah and Bangalore-Jeddah from March 29, 2020 until April 14, 2020, and Chennai-Calicut and Calicut-Jeddah flights from March 29, 2020 until April 24, 2020.

On March 11, IndiGo informed stock exchanges that it has been impacted by coronavirus. "In January and February 2020, IndiGo experienced modest impact from the coronavirus. We cancelled our flights to China and Hong Kong and reduced frequency to certain other South-east Asia markets...over the past few days however, week-on-week, we have seen a 15-20 per cent decline in our daily bookings. Please note that the numbers could change from here based on how the situation evolves."
19/03/20  Manu Kaushik/Business Today
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