The airline industry has long been in a soup due to the novel coronavirus outbreak. But things got even worse for the sector post the governments imposing nationwide lockdowns and travel-bans. It is being predicted that if the lockdown gets extended any further, several budget carriers will have to file for bankruptcy.
In an attempt to sustain their businesses and prevent cash-burn, airline companies have now resorted to tough measures like sending employees on furloughs and cutting salaries.
Joining the likes of its rival Vistara, SpiceJet has decided to send employees earning more than ₹50,000 per month on leave without pay on a rotational basis amid flight services remaining suspended till May 3.
This arrangement would be in place for three months.
As per a report by PTI, the salary for April is likely to be paid to staff for the days they were on duty.
Commercial flights remain suspended since March 25 due to the nationwide lockdown to curb the spreading of coronavirus infections. The lockdown has been extended till May 3.
Meanwhile, The Wadia family-owned GoAir has also sent its employees on leave without pay, till the nationwide lockdown ends on May 3.
While GoAir had already sent a large portion of its staff on leave without pay, the latest communication will now apply to all employees.
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