IndiGo employees to get full salary even when domestic flights remain suspended due to coronavirus

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Updated: Mar 24, 2020 3:13 PM

Even while aviation remains one of the most affected sectors due to the coronavirus outbreak, budget carrier IndiGo has said that its employees will get their full salaries.

IndiGo, IndiGo quarterly earnings, COVID-19, World Health Organisation, coronavirus outbreak, coronavirus impactA FICCI report has said that the current crisis has affected aviation and tourism sector the most.

Even while aviation remains one of the most affected sectors due to the coronavirus outbreak, budget carrier IndiGo has said that its employees will get their full salaries. “For those who don’t have to be working during this temporary suspension of operations, we will make no deduction of salaries or leaves,” Ronojoy Dutta, CEO, IndiGo, said in an email to employees, PTI reported. While international flights have already been grounded, the government also decided to suspend domestic flights and the same will come into effect from midnight Tuesday, as the government races to contain the virus. 

IndiGo has also said that while the airline has a “reasonable” level of advanced bookings for April, it was “anxious” to fly again albeit with a reduced capacity. The airline has also acknowledged that the coronavirus has dealt a severe blow to the aviation industry and the situation will remain concerning for the coming weeks as well. “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,” Ronojoy Dutta said. The airline will use its cash reserves to continue paying salaries and benefits, which the domestic carrier hopes to revive once the outbreak is contained and normal services resume. 

Meanwhile, a FICCI report has said that the current crisis has affected aviation and tourism sector the most. “Tourism, Hospitality and Aviation are among the worst affected sectors that are facing the maximum brunt of the present crisis,” the report said. Another report has pegged the total losses to airline at $ 113 billion, according to a report by the International Air Transport Association (IATA). “Airfares have also come under pressure due to nearly 30% drop in bookings to virus affected destinations. As a result, airfares to such destinations have fallen by 20-30%,” the report said. Meanwhile, Prime Minister Narendra Modi is going to address the nation as fear grips amid coronavirus. In India, the total number of cases have reached over 500 with at least 10 deaths.

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