Aviation

Coronavirus effect: GoAir says all employees will have pay cut in March

Updated : March 25, 2020 02:04 PM IST

Dube had announced last week that only the top leadership of GoAir would be taking a pay cut of up to 50 percent.

India has banned international commercial passenger flights from Sunday. Moreover, domestic flights have also been suspended from Tuesday midnight.

As the coronavirus pandemic has drastically impacted revenues of the aviation sector, GoAir CEO Vinay Dube stated on Wednesday that all employees will be taking a pay cut in March.

Dube had announced last week that only the top leadership of GoAir would be taking a pay cut of up to 50 percent.

During the last few days, the airline has also taken other cost cutting measures -- it has laid off its expat pilots, asked its employees to go on leave without pay on a rotational basis, and announced that its top leadership would be taking a pay cut of up to 50 percent.

In an official communication to employees, Dube on Wednesday said, "Under the current conditions we find ourselves in, we are left with no choice but to extend salary cuts for all of us for the month of March. We will ensure that the lowest pay grades suffer the least."

India has banned international commercial passenger flights from Sunday. Moreover, domestic flights have also been suspended from Tuesday midnight.

Last week, IndiGo CEO Ronojoy Dutta stated that the senior employees of the low-cost carrier will have a pay cut of up to 25 percent.

Air India also announced that the pandemic has caused "insurmountable dip" in revenues and therefore, it is reducing the allowances of all employees - except cabin crew - by 10 percent for the next three months.

In his email to employees on Wednesday, Dube said: "With the grounding of our fleet for the next 21 days, GoAir will require only a skeletal base of employees to focus on the preservation of our aircraft and the reopening of our skies. I request the rest of our employees to stay at home and respect the 21-day lockdown announced by the honourable Prime Minister."

On the issue of pay cuts for everyone, he said he is acutely aware of the pain this decision will inflict on employees and their families, but he does not see another way for the airline to get through this crisis and provide the employees with long-term employment.

"In GoAir's 14-year history, we have never cut employee salaries or deferred salary payments. And throughout our 14-year history our employees have stood by us and taken care of our customers with pride and honour," he stated.

"When the tide turns once again, and it will, GoAir will find a way to compensate all of you for the sacrifice you are being asked to make at this juncture. Given the strong business fundamentals of GoAir, I believe that moment is not so far away," Dube added.