IndiGo Starts Layoffs, Salary Cuts

Cheap flyer IndiGo starts layoff – Due to lockdown and lower in revenue, the flyer IndiGo as a part of its latest steps to slash employee costs has begun laying off a section of employees, while also extending compulsory leave without pay (LWP) for others.

IndiGo is not renewing contracts of some of its cabin crew staff members and some of the ground staff have also lost jobs. These employees were asked to undergo test and anyone getting lower than a threshold, has been asked to put in papers.

Moneycontrol reported that the company, which had already announced pay cuts for its employees, is looking to further cut salaries of pilots under training to around 75 percent. The trim for all line released pilots will be revised upwards to around 45 percent. These changes will be instituted effective July 1.

Also Read – Emirates Airline Sacks 600 Pilots in a Day

IndiGo CEO Ronojoy Dutta had mentioned that the airline is unlikely to make profits this year, and even by the end of the year, will be able to operate only 70 percent of its capacity. The airline has the largest fleet in the domestic industry, and used to operate over 1,500 flights a day, before COVID-19 disrupted the industry.

Apart from IndiGo, other airlines including GoAir and SpiceJet, have also send a substantial percent of their employees on leave without pay.