coronavirus update indiaas on : 20 September 2020 06:25 GMT+5:30
IndiGo To Lay Off 10% Of Its Workforce,Says CEO Ronojoy Dutta
It is impossible for our company to fly through this economic storm without making some sacrifices, IndiGo CEO Ronojoy Dutta said
IndiGo To Lay Off 10% Of Its Workforce, Says CEO Ronojoy Dutta
New Delhi: India's largest private airlines, IndiGo has announced to lay off 10% of its workforce due to the economic crisis due to the coronavirus pandemic, said the company's chief executive officer Ronojoy Dutta said.
"From where things stand currently, it is impossible for our company to fly through this economic storm without making some sacrifices, in order to sustain our business operations," Dutta said in a statement.
"Therefore, after carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10% of our workforce. It is for the first time in the history of IndiGo that we have undertaken such a painful measure," he added.
Due to the disruption caused by the coronavirus outbreak, the airlines have been facing a severe crash crunch
The domestic, as well as international flight operations, were shut in the last week of March to prevent virus spread. After a gap of two months, the civil aviation industry resumed the domestic flight operations in a limited manner on May 25.
The domestic airlines can operate with 45% capacity at present. Airlines earlier were allowed to operate with only one-third of capacity when flights resumed.IndiGo said that the airlines are flying only a small percentage of its full fleet of 250 airplanes.
Airlines such as SpiceJet, GoAir and Air India,have either cut salaries or have sent a major part of their staff on leave without pay.
India has created a "6E care package" for the impacted employees.“At a minimum, an impacted employee will receive at least three months’ gross salary, including both the above payments," the statement read.
“This has been one of the toughest decisions that we have had to take and we are ensuring that the transition process for the impacted employees is carried out seamlessly, professionally; and with the utmost respect and compassion. We would like to express our heartfelt gratitude and sincere thanks to all our people who have stood by us through thick and thin; and we are confident that both individually as well as collectively, we will emerge stronger out of this crisis," the note added.
Earlier the company announced pay cuts for its employees under a limited, graded leave without pay program for the months of June, May, and July.
Indigo CEO Rononjoy Dutta in a mail to employees, said, "No option but to implement pay-cuts from the month of May. Have to implement limited, graded leave without pay program for May, June & July."