Faced with a dramatic slump in demand, domestic airlines IndiGo and GoAir have taken steps to cut down manpower costs.
IndiGo has told pilots that they may no longer be required to do extra hours, and the airline is withdrawing the incentive of giving compensation in lieu of leave.
"Buying of leaves has stopped. This was earlier done to incentivise pilots to fly more to cover for rapid expansion," a source told Moneycontrol.
IndiGo had recently communicated the same to its Indian and the expat pilots on the A320 fleet.
"Due to the ongoing threat of COVID 19 and various visa restrictions being placed, there is a likelihood of curtailment of our schedule. As a consequence, we will no longer be in need of extra availability in the coming months. Therefore, Admin Notice 36 E (Compensation in lieu of leave) is being withdrawn with immediate effect," the airline told its pilots.
Moneycontrol has sought a response from the airline and will update the story as soon as it gets one.
IndiGo's peer GoAir has asked some of its employees to go on unpaid leave, to save on costs. "GoAir has also initiated a short term and temporary rotational leave without pay program," the airline said.
"That will not only help the company counter the short term reduction in capacity, but will also ensure that a cross-section of our employees stays away from the workplace to ensure business continuity," said the company.
The spread of coronavirus has raised a serious question on the sustainability of aviation business. While over 6,000 people have died, more than 180,000 have been infected globally. In India, the numbers are three and 126, respectively.
18/03/20 Prince Mathews Thomas/Moneycontrol.com
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IndiGo has told pilots that they may no longer be required to do extra hours, and the airline is withdrawing the incentive of giving compensation in lieu of leave.
"Buying of leaves has stopped. This was earlier done to incentivise pilots to fly more to cover for rapid expansion," a source told Moneycontrol.
IndiGo had recently communicated the same to its Indian and the expat pilots on the A320 fleet.
"Due to the ongoing threat of COVID 19 and various visa restrictions being placed, there is a likelihood of curtailment of our schedule. As a consequence, we will no longer be in need of extra availability in the coming months. Therefore, Admin Notice 36 E (Compensation in lieu of leave) is being withdrawn with immediate effect," the airline told its pilots.
Moneycontrol has sought a response from the airline and will update the story as soon as it gets one.
IndiGo's peer GoAir has asked some of its employees to go on unpaid leave, to save on costs. "GoAir has also initiated a short term and temporary rotational leave without pay program," the airline said.
"That will not only help the company counter the short term reduction in capacity, but will also ensure that a cross-section of our employees stays away from the workplace to ensure business continuity," said the company.
The spread of coronavirus has raised a serious question on the sustainability of aviation business. While over 6,000 people have died, more than 180,000 have been infected globally. In India, the numbers are three and 126, respectively.
18/03/20 Prince Mathews Thomas/Moneycontrol.com
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