After Spice Jet, now IndiGo has also initiated a cut in its employees’ salaries as the second COVID wave has hampered air traffic demand and revenues. Kapil Kaul of CAPA India shared his views.
“The salary cuts at IndiGo and what is happening at SpiceJet is on expected lines,” he said in an interview with CNBC-TV18.
“Because of the second wave of COVId-19, it is almost a washout quarter one for us and it will have a downside impact on Q2 as well,” he added.
“There was no other options for the airlines than to look at cost cutting measures and one of the cost-cutting measures which are in their hand is to look at salary wage benefit-cost and look at reductions based on their estimate of what the revenues will look like in FY22 Q1 and Q2,” he stated.
The second wave of COVID-19 has been much more devastating than the first one. “The first wave had a devastating impact on airlines. The second wave has been more devastating,” he shared.
For the full interview, watch the accompanying video
(Edited by: By Abhishek Jha)
First Published: IST