IndiGo to let go of 10% of work force

Our Bureau. New Delhi | Updated on July 20, 2020

Delhi-based low-cost airline IndiGo, which has a market share of close to 50 per cent, has decided to let go of 10 per cent of its work force. The airline reported a market share of 48.9 per cent in March this year. It was not immediately clear how many IndiGo employees would be affected by this decision. The annual report shows that as of March 31, 2019, IndiGo had 23,531 permanent employees on the company’s rolls.

“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,” said Ronojoy Dutta, Chief Executive Officer, in a letter to employees.

The letter adds that the impacted employees would be paid notice pay in lieu of serving the notice applicable to them. This will be calculated on the gross salary basis.

In addition to notice pay, the impacted employees would be paid a severance pay, which will be calculated as one month of CTC for every completed year of service, subject to a maximum of 12 months. This will lead to higher cash in hand when comapred to the calculations on gross salary.


At a minimum, an impacted employee will receive at least three months’ gross salary, including both these payments. Those who have had a higher tenure with the company will receive more.

In addition, for this year, longevity bonus will be paid along with the full and final settlement to eligible crew members. This bonus is only applicable to cabin crew staff.

Medical insurance coverage for impacted employees will be extended till December 2020. There will also be a provision to continue with the policy post December as per applicable market rates. For those employees who had covered their parents via the policy, such insurance will also be extended till December 2020.

The airline is also offering a one-way confirmed air ticket in case the impacted employees need to go their home towns or base locations.

Published on July 20, 2020

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