IndiGo CEO Ronojoy Dutta on Thursday announced pay cut for all employees, will himself take 25 per cent cut in salary, amid coronavirus pandemic.
CEO Ronojoy Dutta said that he himself will accept 25 per cent cut in salary. He further added that senior vice presidents and above are taking 20 per cent pay cut, while vice presidents, cockpit crew are accepting 15 per cent pay cut
"With the precipitous drop in revenues, the very survival of the airline industry is now at stake," Dutta said in his email to employees. "We have to pay careful attention to our cash flow so that we do not run out of cash."
"With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020," the chief executive officer said.
Band A and B are the lowest brackets in salary class, where most of the employees are.
"I am personally taking a 25 per cent pay cut, SVPs (senior vice presidents) and above are taking 20 per cent, VPs (vice presidents) and cockpit crew are taking a 15 per cent pay cut, AVPs (assistant vice presidents), Bands D along with cabin crew will take 10 per cent and Band Cs five per cent," Dutta noted.
The CEO said he knew how hard it was for families to take a cut in "take-home pay".
The decision comes after IndiGo's flight operations chief Ashim Mitra has sent out an email to the pilots on Thursday morning warning them of some tough decisions to be taken in the near future.
"Economic environment in aviation sector has deteriorated significantly and it has become necessary to initiate some tough decisions over the next few days and weeks," Mitra has written.
Mitra stated in his email: "Economic environment has deteriorated significantly and no airline is insulated from this severe downturn."
"It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks."
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