You are here: Home » News-ANI » Business
Business Standard

GoAir leadership teams to take pay cut as planes are grounded amid COVID-19

ANI 

Low-cost airline GoAir said on Wednesday its leadership teams will take a pay cut this month due to grounding of its fleet for the next 21 days in view of the countrywide lockdown.

"Under the current conditions we find ourselves in, we are left with no choice but to extend salary cuts for all of us for the month of March. We will ensure that the lowest pay grades suffer the least," said Chief Executive Officer Vinay Dube.

"I am acutely aware of the pain this decision will inflict on you and your families, but I do not see another way for us to get through this crisis and provide you with longer-term employment," he said in a communication to employees.

Dube said that with the grounding of the fleet for the next 21 days, GoAir will require only a skeletal base of employees to focus on the preservation of aircraft. "I request the rest of our employees to stay at home and respect the 21-day lockdown announced by the Prime Minister."

GoAir's existing fleet comprises of 57 aircraft, including 42 Airbus A320neo and 15 A320ceo (current engine option) aircraft.

A week ago, IndiGo grounded about 16 planes out of its total fleet of 260 aircraft and asked the employees to take 10 to 20 per cent salary cuts as it grapples with the impact of coronavirus on domestic and international flights.

Due to to the severity of travel restrictions across the globe and the expected global recession, the International Air Transport Association (IATA) estimates that aviation industry passenger revenues can plummet by 252 billion dollars or 44 per cent below 2019's figure due to COVID-19 pandemic.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 14:59 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU