IndiGo reinstates pay cut, introduces leave without pay program for senior employees from May

IndiGo will cut salaries of senior employees from May onwards and also implement a "limited, graded leave without pay program" for them during the months of May, June and July, its CEO Ronojoy Dutta said on Friday.

The aviation sector has been hit hard due to the suspension of all commercial passenger flights during the coronavirus-induced lockdown in the country which began on March 25. Bookings for flights have been cancelled till further orders.

"While we had paid employee salaries in full for the months of March and April, I am afraid that we are left with no option but to implement the originally announced pay-cuts from the month of May 2020," Dutta told employees in an email which was seen by PTI.

IndiGo had announced pay cuts for its senior employees on March 19. However, it rolled back the decision on April 23 in deference to the "government's wishes".

On March 23, the Modi government had asked public and private sector companies not to cut salaries or lay off employees during the COVID-19 lockdown.

In his email on Friday, Dutta said, "In addition (to pay cuts), given the gradual build-up of capacity, I am afraid we have to take the additional painful step of implementing a limited, graded leave without pay program for the months of May, June and July."
Dutta said, "As you all know, our operations have been pretty much grounded ever since March 25, 2020, except for a few rescue and cargo flights, resulting in practically no revenues since then."