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Coronavirus update: IndiGo assures employees no salary cut during lockdown

This is the first time India has done a total shutdown of air transport. The United States did it after 9/11 terror attack on the World Trade Centre

twitter-logo BusinessToday.In        Last Updated: March 25, 2020  | 13:13 IST
Coronavirus update: IndiGo assures employees no salary cut during lockdown
IndiGo will be spending its cash reserves to continue to pay salaries and benefits to employees.

Budget carrier IndiGo has assured that it would not deduct salaries or leaves of its employees amid lockdown.  The central government has suspended  domestic flights till midnight March 31 to combat the thread of coronavirus.

In an email,  IndiGo Chief executive Officer Ronojoy Dutta said,  "For those who don't have to be working during this temporary suspension of operations, we will make no deduction of salaries or leaves".  Dutta said that during this temporary suspension of operations, IndiGo will be spending its cash reserves to continue to pay salaries and benefits to employees.

Also read: Coronavirus in India Live Updates: PM Modi practices 'social distancing' while holding Cabinet meet

Dutta also added that it was a challenging time for the airline. "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," Dutta said.

This is the first time India has done a total shutdown of air transport. The United States did it after the terror attack on the World Trade Centre on September 11, 2001.

Yesterday PM Narendra Modi announced a pan-India lockdown for three weeks to stem the spread of COVID-19. During this lockdown, only groceries, pharmacy shops other essential services will remain open. Rest, non-essential services will be closed.  The number of coronavirus cases has climbed to 536 in India and 11 people have died, according to Indian Council for Medical Research said.

Also read: Coronavirus: PM urges people to not crowd at shops during lockdown

Also read: Amazon, Big Basket, Grofers locked down as local authorities misinterpret order

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