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Coronavirus crisis: Vistara CEO to take 20% pay cut till December

Vistara, which has more than 4,000 employees on its payrol, announced a pay cut between 5 to 20 per cent till December this year for around 40 per cent of its employees

twitter-logoBusinessToday.In | June 30, 2020 | Updated 21:18 IST
Coronavirus crisis: Vistara CEO to take 20% pay cut till December
Vistara resumed its domestic passenger flight operations on May 25

The Tata-Singapore Airlines joint venture Vistara on Tuesday announced that its chief executive Leslie Thng will take a 20 per cent monthly pay cut till December, while it proposed 5-20 per cent pay cut for around 40 per cent of its employees. The airline has been hit hard by ongoing coronavirus-induced lockdown, which has adversely impacted its financial performance.

The Gurgaon-based full-service airline has more than 4,000 employees on its payroll.

"About 60 per cent of our employees are not impacted by the pay cut," a Vistara spokesperson said.

In an email to employees, Vistara CEO Leslie Thng said, "From 1st July, 2020, to 31st December, 2020, I will take a 20 per cent pay cut and we will be implementing a monthly pay cut scheme for staff (except for pilots) as follows: 15 per cent pay cut for staff in Level 5 and 4; 10 per cent pay cut for staff in Level 3 and 2, and licensed engineers in Level 1C; 5 per cent pay cut for staff in Level 1 with monthly CTC equal or more than Rs 50,000."

"For pilots, we will continue with the reduction of monthly base flying allowance to 20 hours for July to December 2020. Allowances will also be adjusted for pilots under certain categories of training," he added.

Also Read: Coronavirus effect: Vistara announces leave without pay for 4 days per month in May, June

Till April, Vistara's pilots were getting base flying allowance, which is a fixed component of the salary, for 70 hours per month.

The carrier is operating at less than 30 per cent of its original network, while its passenger loads on its flights are also not as strong as before the COVID-19 pandemic. Thng told employees the financial performance of the company will continue to be negatively affected by COVID-19 as travel confidence and demand will take a while to fully recover to pre COVID-19 level.

Also Read: Coronavirus impact: Vistara or AirAsia India? Tata Group must pick one as losses mount

Last month, the Vistara CEO had announced that senior employees will have to go on compulsory leave without pay (LWP) for up to four days per month in May and June. Earlier in April, Vistara had sent the same set of senior employees on compulsory LWP for up to six days, which affected around 1,200 employees. The CEO had also stated that for May and June, the monthly base flying allowance for pilots had been reduced to 20 hours per month.

After a gap of two months, Vistara resumed its domestic passenger flight operations on May 25 as government allowed domestic flight operations to resume. Scheduled international passenger flights continue to remain suspended in the country.

With PTI inputs

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