Monday, July 20, 2020

IndiGo to lay off 10% of its workforce: CEO Ronojoy Dutta

New Delhi: India's low-cost carrier Indigo has decided to lay off 10% of its workforce due to the crisis caused by coronavirus pandemic. In a statement Indigo's CEO, Ronojoy Dutta said, "After carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10 per cent of our workforce. It is for the first time in the history of IndiGo that we have undertaken such a painful measure". The aviation sector has been one of the worst-affected sectors across the world.
Domestic air travel in India resumed from May 25, 2020, after remaining suspended for almost two months due to national lockdown. Indigo's CEO says, "Right at the start of this crisis, IndiGo understood the gravity of the situation. For us, it was critical to minimise the impact of the pandemic on our employees and in fact, IndiGo was one of the few airlines globally which paid full salaries for the month of March and April 2020, despite the disruption in business. Subsequently, we did have to undertake a number of measures such as Pay Cuts, Leave Without Pay and various other costs; but unfortunately, these cost savings are clearly not enough to offset the decline in revenues."

Even now Indigo is flying only a small percentage of its full fleet of 250 aeroplanes hence according to the officials in the company, with hardly any pick up in demand, it is getting tough to sustain business operations.

Ronojoy Dutta says, "It is for the first time in the history of IndiGo that we have undertaken such a painful measure. This is indeed a very unfortunate turn of events from the optimistic growth trajectory we had carved out for ourselves just six months ago, but this pandemic has forced us to re-evaluate our best-laid plans."

This decision by Indigo comes just a few days after India's national carrier Air India cleared Leave Without Pay, (LWP) scheme through which Air India will be sending its employees on leave without pay for a period ranging from 6 months to 2 years. Following this decision, both Air India and the Government has been facing flak. Political parties like TMC & Congress have strongly criticised this decision.
20/07/20 Heena Gambhir/
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