The global onslaught of COVID-19 has cast a shadow on the future of the aviation industry with airlines both at home and abroad announcing pay-cuts and partially suspending services amid mass-scale travel ban in major aviation sectors. The situation for airlines has further turned grim after the Centre’s move to ban all domestic flights in the country from 25 March.
Faced with a sharp dip in air traffic, IndiGo – India’s largest and wealthiest private carrier – prior to the suspension of all domestic flight operations said it will bring into effect a salary-cut of up to 25 percent for its staff.
According to a report in The Economic Times, the no-frills carrier’s CEO Ronojoy Dutta in an e-mail said that senior vice presidents and other executives would face a pay-cut of 20 percent from 1 April, while vice presidents and pilots would be paid 15 percent lesser.
According to the report, while cabin crews employed by the airline would face a five to ten percent pay-cut, Dutta himself has said he would take 25 percent lesser. Aware of how a pay-cut can impact the lives of employees, Dutta, in the letter stated that ‘it is impossible for our company to fly through this economic storm without all of us making some sacrifices.”
Reacting to the ban on domestic flights, aviation expert Jindendra Bhargava said that although airlines, like many other industries, will suffer, the larger point here is to break the chain of transmission.
“No lockdown can be successful if flights are operational. We can’t overlook the major objective, which is containing the coronavirus,” he said.
But expecting airlines to pay full salaries is not advisable as it will only burden its already strained finances. However, he added that “the government and the airlines must come together to ensure that employees have enough to sustain themselves.”
24/03/20 Anthony Rozario/Quint
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Faced with a sharp dip in air traffic, IndiGo – India’s largest and wealthiest private carrier – prior to the suspension of all domestic flight operations said it will bring into effect a salary-cut of up to 25 percent for its staff.
According to a report in The Economic Times, the no-frills carrier’s CEO Ronojoy Dutta in an e-mail said that senior vice presidents and other executives would face a pay-cut of 20 percent from 1 April, while vice presidents and pilots would be paid 15 percent lesser.
According to the report, while cabin crews employed by the airline would face a five to ten percent pay-cut, Dutta himself has said he would take 25 percent lesser. Aware of how a pay-cut can impact the lives of employees, Dutta, in the letter stated that ‘it is impossible for our company to fly through this economic storm without all of us making some sacrifices.”
Reacting to the ban on domestic flights, aviation expert Jindendra Bhargava said that although airlines, like many other industries, will suffer, the larger point here is to break the chain of transmission.
“No lockdown can be successful if flights are operational. We can’t overlook the major objective, which is containing the coronavirus,” he said.
But expecting airlines to pay full salaries is not advisable as it will only burden its already strained finances. However, he added that “the government and the airlines must come together to ensure that employees have enough to sustain themselves.”
24/03/20 Anthony Rozario/Quint
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