Coronavirus Impact: GoAir Says All Employees Will Have Pay Cut In March
The move is to ensure that those under the lowest pay grade suffer the least, its CEO said.
GoAir Chief Executive Officer Vinay Dube today said all employees will be taking a pay cut in the current month in the backdrop of the coronavirus pandemic that’s drastically impacted revenues of the airlines.
GoAir had already taken some cost cutting measures in the last few weeks like laying off expat pilots, asking 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.
Dube told employees in an official communication, "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 for a period of one week until March 29. Moreover, domestic flights have also been suspended from March 24 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.