AirAsia cuts pilot salaries by 40% for May, June as aviation continues to face coronavirus heat

By: |
Published: June 3, 2020 5:49 PM

Tata Group and AirAsia Ltd JV AirAsia India has imposed salary cuts for its pilots by an average 40% as the aviation business continues to face heat from coronavirus pandemic.

The senior management at AirAsia India had taken a pay cut of 20 per cent in April.

Tata Group and AirAsia Ltd JV AirAsia India has imposed salary cuts for its pilots by an average 40% as the aviation business continues to face heat from coronavirus pandemic. The salary reduction is for the months of May and June, an airline source said, PTI reported. For those in managerial positions and other categories, the salary cuts remain same as April level. The senior management at AirAsia India had borne a 20% pay cut in April, while the executives in other categories got reduced salaries by 7-17%. The airline has not deducted the pays of those employees who earn lesser than Rs 50,000 per month. The airline has been serving in India for nearly six years and employs around 2,500 people. As many as 600 of them are pilots for its 30 Airbus A320 aircraft fleet.

AirAsia was earlier paying its pilots for flat 70 hours irrespective of flying or no flying. The same has now been brought down to 20 hours. “This way, the average salary of a first officer (junior pilot) has come down to Rs 40,000 per month from Rs 1.40 lakh, and that of a captain (senior pilot) to Rs 1 lakh from Rs 3.45 lakh,” the news agency cited a source as saying.

Global aviation industry has been facing the headwinds of coronavirus as governments across the world imposed travel restrictions to avoid the spread of the outbreak. The same has taken a massive toll on aviation industry with airlines across the world struggling to stay afloat due to drying up revenues. Earlier, CAPA, a global airline consultancy firm, had said that the domestic carriers would need to realign their fleet deployment plans as demand levels may fall. While the government has resumed operations for domestic flights in the country, international flights are still on hold as cases of the coronavirus continue to rise in the country.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Former director of Religare Enterprises Ltd booked for cheating firm to the tune of over Rs 3 crore
2Airtel’s Ajai Puri to chair COAI, Reliance Jio’s PK Mittal appointed vice-chairman
3OnePlus TV U, OnePlus TV Y affordable series of smart TVs launched in India; price starts at Rs 12,999