Domestic carriers SpiceJet and GoAir on Wednesday announced that all its employees will have to take a pay cut in March amid grounding of operations due to coronavirus outbreak. While SpiceJet implemented a 10-30 per cent pay cut for last month, GoAir deferred a part of March salaries for its staff in addition to salary cuts implemented earlier.
In a press release, SpiceJet announced a company-wide pay cut for its employees for the month of March 2020 to tide over the unprecedented crisis thrust by the COVID-19 pandemic. The airline has implemented a 10-30 per cent pay cut for all its employees across top and mid rung levels.
The low-cost carrier has, however, assured that its employees in the lowest pay grades will remain unaffected by the decision. In the wake of the crisis, the airline's Chairman and Managing Director, Ajay Singh, has decided to opt for the highest cut of 30 per cent in salary, it said.
SpiceJet has announced 'leave without pay' for employees during March 25 to 31 - the period of the lockdown when all passenger flights were suspended. However, employees who have been working during this period like cargo, ground staff, crew who have flown during this time, will not be affected by the 'leave without pay' and their salaries for this period will be reimbursed, the company said.
"The bold measures are in the best interest for everybody at SpiceJet as it aims to sail through the crisis with zero retrenchment," it added.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, "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. Tough times don't last, tough people do. SpiceJet was born of adversity and it is the same adversity that brings out the best in each and every one of us."
Meanwhile, low-cost carrier GoAir on Wednesday told employees that a part of their March salary has been deferred to April. This is in addition to pay cut announced on March 25.
"Yesterday, salaries were posted to each of your bank accounts. All employees in Grades D and below received salaries in their entirety," GoAir CEO Vinay Dube said in an email to employees.
"The rest of you will see less than what you are normally used to seeing as a result of the reduction in pay I had announced earlier, but also because we have been forced to defer a portion of your accrued salaries to April," Dube added.
Since last week, GoAir has been taking several cost-cutting measures -- it has laid off its expat pilots, asked its 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 per cent.
India's aviation industry, reeling from the impact of the global outbreak of COVID-19, is seeking help from the government to mitigate the financial impact of the pandemic. COVID-19 driven lockdowns have adversely impacted the industry, leading to significant economic headwinds. Several airlines, both in India and abroad, have been forced to undertake severe measures amidst tough market conditions.ent to mitigate the financial impact of the pandemic. COVID-19 driven lockdowns have adversely impacted the industry leading to significant economic headwinds. Several airline companies, both in India and abroad, have been forced to undertake severe measures in their attempt to survive amidst tough market conditions.