Budget carrier SpiceJet has announced a 30% salary cut for its top management as the aviation business remains one of the worst hit sectors in the country.
Budget carrier SpiceJet has announced a 30% salary cut for its top management as the aviation business remains one of the worst hit sectors in the country. “The airline has implemented a 10-30% pay cut for all its employees across top and mid rung… employees in the lowest pay grades will remain unaffected by the decision,” the company said in a statement. SpiceJet Chairman and Managing Director Ajay Singh will bear the highest cut of 30% in salary for March 2020. The airline has also announced ‘leave without pay’ from 25 March-31 March. Employees such as cargo, ground staff, crew will be exempt from the same as they were working during the period.
“The COVID-19 pandemic and the subsequent lockdown have forced us to take some tough measures to ensure that no one at SpiceJet is retrenched. What we are facing is a global phenomenon and no airline in the world is immune to the impact,” Ajay Singh said.
The aviation industry is facing economic headwinds of the coronavirus as demand has slumped. In the wake of the same, the industry has sought government measures to cushion the blow. “Several airline companies, both in India and abroad, have been forced to undertake severe measures in their attempt to survive amidst tough market conditions,” SpiceJet said. The situation is dire for the industry and an industry advisor had earlier said that several airlines are staring at bankruptcy by May-end if the coronavirus situation persists. “Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full,” CAPA had said a fortnight ago. A UK-based airline Flybe has already collapsed due to the coronavirus outbreak.
Meanwhile, other domestic carriers have also announced pay cuts to curb financial impact of coronavirus. IndiGo had announced a pay cut for its top employees while GoAir extended salary cuts for all of its employees.