Mumbai: To cut down costs due to COVID-led loss of revenue, Vistara has asked it's senior-most employees to go on a three day, no-pay mandatory leave this month. The move comes in the wake of government decision to extend the lockdown till May 3. Airlines were looking forward to staggered commencement of domestic services post the 21-day lockdown which ended on April 14.
"For the period between April 15 to April 30, about 30% of Vistara's workforce will take compulsory no-pay leave of one to three days, depending on employment grades (three days for senior-most employees). This decision does not impact the remainder 70% of Vistara staff," said a Vistara spokesperson.
"The extension of lockdown and suspension of our services till May 3 further impacts our cash flow significantly. As part of a number of steps we are taking to conserve cash and save costs, we had to make the difficult decision of further reducing our staff costs with the objective of preserving jobs", the airline official added.
Airlines world over have been putting in place cost cutting measures as coronavirus led travel restrictions and flight cancellations have drastically cut down airline revenues to unprecedented lows.
15/04/20 Manju V/Times of India
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"For the period between April 15 to April 30, about 30% of Vistara's workforce will take compulsory no-pay leave of one to three days, depending on employment grades (three days for senior-most employees). This decision does not impact the remainder 70% of Vistara staff," said a Vistara spokesperson.
"The extension of lockdown and suspension of our services till May 3 further impacts our cash flow significantly. As part of a number of steps we are taking to conserve cash and save costs, we had to make the difficult decision of further reducing our staff costs with the objective of preserving jobs", the airline official added.
Airlines world over have been putting in place cost cutting measures as coronavirus led travel restrictions and flight cancellations have drastically cut down airline revenues to unprecedented lows.
15/04/20 Manju V/Times of India
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