Thursday, August 20, 2020

In another round of exodus, half-a-dozen executives quit GoAir: Report

GoAir has seen the exit of half-a-dozen senior executives in recent weeks as the budget airline struggles to pay salaries and keeps staff on leave without pay, according to two sources.
The Wadia group-promoted carrier has around 6,700 employees and around as much as 4,000-4,500 of them are on leave without pay (LWP), one of the sources said.
When contacted for comments on quitting of senior executives, a GoAir spokesperson neither denied nor confirmed the resignations.

The airline "continues to assess the current market situation and will align its cost structures with the current flight operations. These are planned furloughs in order to minimise cash burn so that the staff count is aligned to the current scale of operations", the spokesperson said in a statement.

The airlines industry has been grappling with strong headwinds due to the coronavirus pandemic, with many of the carriers laying off people as part of cost-cutting measures. GoAir has also been severely hit by suspension of flight services to curb the spread of coronavirus.

Besides announcing paycuts for most of its employees in March, GoAir had also announced the LWP scheme for 60-70 per cent of the staff in April.

The sources quoted above said salary payments to the remaining 30 per cent of the workforce is also not regular.

Earlier this month, the airline gave three options to the employees -- voluntary resignation, termination and continue on LWP for an indefinite period. Subsequently, more than half-a-dozen senior executives left the airline while some others mulling various options, the sources told PTI.
19/08/20 PTI/Business Standard
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