Tuesday, July 28, 2020

IndiGo to impose steeper salary cuts, CEO Dutta to take 35% cut

IndiGo is planning to impose steeper salary cuts from September. Chief Executive Officer (CEO) Ronojoy Dutta is also expected to take a 35 per cent salary cut, CNBC TV18 reported citing unidentified sources. Already hit hard by the coronavirus-induced lockdown, it would be IndiGo's second round of pay cuts.

According to the report,the senior vice presidents will take a salary cut of 30 percent. The cut for pilots is 28 percent, for Vice Presidents 25 percent and 15 percent for associate vice presidents.

The salary cuts are required to adjust the cost structure of the airline to the fall in revenues, Dutta was reported as saying in an internal email to the employees.

In May, IndiGo had initiated 20-25 per cent pay cuts for senior staff, including pilots. It also started a graded leave-without-pay programme for all its employees until July.

Earlier there were reports that IndiGo wrote an email to its pilots informing them of 5.5 days of leave without pay. Moreover, the Gurugram-based airline also slashed salaries of under-training transition captains and transition first officers by over 45 per cent.
27/07/20 Business Today
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