IndiGo reverses decision to cut employee pay
Indian budget airline IndiGo has reversed its plan to cut employee pay this month.
The U-turn comes after apparent pressure from the government.
However airline executives will take voluntary pay cuts as planned.
"You can expect your April salaries to be paid without the pay cuts," CEO Ronojoy Dutta said in a memo to workers.
"Your Executive Committee members and senior vice presidents have volunteered to take pay cuts this month."
The airline has bowed to the ‘government’s wishes’ in reversing the decision.
India has been under a nationwide lockdown since March 25 which continues until early May.
All commercial passenger flights have been suspended across the country which has severely impacted airlines.
Dutta announced last month that the airline would cut pay across many senior and mid-scale positions including cabin crew.
"Right now, we have little control over our revenues and a lot of control over our costs and therefore that is where we are focusing all our energies," Dutta said.
"We have always been a very cost-conscious company and going forward we will be sharpening up our core competence even more."
The Federation of Indian Chambers of Commerce & Industry has pleaded for a bailout for the aviation industry but says the government ‘has shown no indication’ of doing so.
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