While CEO Ronojoy Dutta will take a further pay cut of 35%; senior vice-presidents and above will take a cut of 30%; pilots 28% and VPs and associate VPs 15%.
Dutta wrote in a mail to employees: “I will increase my personal pay cut percentage to 35%. I am asking all senior vice presidents and above to take a 30% pay cut, all pilots will see their pay cut percentages increased to 28%, all vice presidents will take a 25%pay cut and associate vice presidents will take a 15% pay cut… To cushion the impact among lower paid employees, this time around, we will increase the pay cut percentages only among the very top at the pyramid.”
So far during the pandemic IndiGo — the only airline with some cash reserves — has gone in for a round of salary cut for its employees; leave without pay (LWP) and two pay cuts for pilots. Before the latest round, Dutta took a 25% cut in salaries; senior VPs 20%; VPs 15% and associate VPs10%. In May, IndiGo had also cut the salaries of Band D employees and cabin crew members by 10%, and of Band C employees by 5%.
“It is our intent to gradually reduce the number of days without pay as we add back more flights,” Dutta wrote.
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All airlines have resorted to pay cuts, LWPs and some layoffs as the travel sectors is the worst hit by the pandemic. Air India has cut its pilots’ allowances — which comprises lions sare of their pay — by 60-80% and will be sending employees on LWP for up to 5 years. In GoAir, almost 80% employees are on LWP since April and there have been pay cuts for those who are working. SpiceJet has resorted to a mix of LWP and pay cut.
IndiGo in May had implemented a compulsory LWP scheme for up to five days per month, that was increased to 10.5 days per month in August.
Dutta said: “We are not making any changes for August LWP and from September each department will decide on the LWP for each month based on workloads and staffing levels. You can expect a direct communication from your department head on LWP each month. It is my earnest hope that the environment is conducive enough for us to add capacity back quickly and reduce LWP to zero.”
Schedule flights were suspended in March-end. Domestic flights were allowed to resume partially from May 25 with strict fare bands and capacity constraints due to limits set by different states. Schedule international flights are suspended till the month-end for now. Some Indian airlines, led by AI, are operating repatriation flights under Vande Bharat Mission.