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No salary deduction during domestic flights suspension period: IndiGo

PTI Mumbai | Updated on March 24, 2020 Published on March 24, 2020

Budget carrier IndiGo has assured its employees that it will not make any deduction in their salaries or leaves due to the suspension of domestic flights till March 31. The government’s decision to suspend domestic flight would come into effect from midnight Tuesday, as part of larger efforts to curb spreading of coronavirus infections.

In an e-mail to his employees, IndiGo Chief executive Officer Ronojoy Dutta said the company has “reasonable” level of advanced bookings for April and it was “anxious’ to fly again albeit with a reduced capacity. “For those who don’t have to be working during this temporary suspension of operations, we will make no deduction of salaries or leaves,” Dutta said in the e-mail. PTI has accessed the e-mail.

Stating that the last few days have been very challenging for the airline, he said “clearly for the next few weeks our revenues will be well below our costs and we will have to make our efforts to penny-pinch and preserve cash.” He also said that as employees “let us also be acutely cognizant of the fact that during this temporary suspension of operations, we will be spending our cash reserves to continue to pay salaries and benefits.”

Once this crisis is over, the airline will have to redouble its efforts to rebuild these cash reserves, Dutta added.

Published on March 24, 2020
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