IndiGo announces up to 35% pay cut for senior employees

New Delhi: IndiGo on Monday said it is implementing "deeper" pay cuts of up to 35 per cent for its senior employees in order to reduce its cash outflow amid the Coronavirus pandemic.

From May onwards, IndiGo had implemented pay cuts of up to 25 per cent for its senior employees.

The "deeper" pay cuts came after the airline's announcement on July 20 that it would lay off 10 per cent of its workforce due to the economic crisis caused by the pandemic.

In an e-mail on Monday, IndiGo CEO Ronojoy Dutta told employees, "I will increase my personal pay cut percentage to 35 per cent. I am asking all senior vice presidents and above to take a 30 per cent pay cut, all pilots will see their pay cut percentages increased to 28 per cent, all vice presidents will take a 25 per cent pay cut and associate vice presidents will take a 15 per cent pay cut."

These increased pay cuts will come into effect from September 1, he added.

The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the Coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, leave-without-pay and lay-offs in order to conserve cash.

Before Monday's announcement, IndiGo CEO Dutta took a 25 per cent cut in salaries. For senior vice presidents the pay cut was 20 per cent, for vice presidents it was 15 per cent and for associate vice presidents it was 10 per cent.