The spread of Covid-19 has impacted the aviation sector really hard. When the story unfolded Cathay Pacific was one of the first ones ( early Feb 2020) to announce cost cutting measures in form of unpaid leave for 27,000 of its employees. We are only two months down and it seems all big and small airlines across the globe has been hit, with most of their fleets grounded.
In India, almost all major players have announced some measures including immediate pay cuts at multiple levels, retrenchment of expat pilots, unpaid leaves in a staggered manner and pay cuts for senior management team. Earlier IndiGo, Go Air, and Vistara had announced their cost cutting measures. Now, it is being reported that SpiceJet has announced a pay cut of 10 – 30% for middle and senior level employees across job roles, for the month of March 2020. Earlier, the airline had asked the employees to be on leave without pay on a rotational basis. Leave without pay was also announced for the period 25th – 31st March, considering suspension of all flights, with the exception of crew on active duty, cargo, and ground staff.
Ajay Singh, Chairman SpiceJet, will see his compensation trimmed by 30 % , the highest bracket. The pay cuts was announced in a communication to the employees. Employees at lowest pay grades would not be affected by the pay cuts that were announced today.
The company statement mentioned, “The airline has implemented a 10-30 per cent pay cut for all its employees across top- and mid-rung levels. In the wake of the crisis, the airline’s Chairman and Managing Director, Ajay Singh, has decided to opt for the highest cut of 30 per cent in salary.”
Earlier Indigo had announced a 5 – 20 % pay cut for a section of its employees ( with exception of employees in lower pay grade – Band A, B), with Indigo CEO Ronojoy Dutta taking a 25% cut in salary. Last week Vistara also announced a pay cut of about 10 %, compulsory no pay leave during the period of shut down, and its annual increment cycle and performance pay payouts deferred by three months.
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