New Delhi, May 20, 2020: Simultaneously, the airline has also implemented the pay cuts which were announced in March but reversed in April.
India’s largest airline IndiGo has implemented a a number of measures to reduce the salary of its pilots amid the COVID-19 pandemic, sources told CNBC-TV18.
The airline, which commands 49 percent share in domestic aviation market, has asked some of its pilots to opt for either an annual pay package with 42 days PL (paid leave) program or to opt for a pay package which will have 3 weeks of work and then one week rest. This step is likely to severely impact the salary for pilots as a substantial amount is expected to be deducted.
IndiGo is yet to respond to CNBC-TV18’s query.
In addition to the above two options, there was also an option of 22 days PL program, which used to result in higher salary for pilots as compared to 42 days PL and three weeks work with one work rest program.
The airline has not mentioned the time period for which the above decision will be applicable. Traditionally, IndiGo asks the pilots to make the decision about the pay structure once a year, sources said.
Simultaneously, the airline has also implemented the pay cuts which were announced in March but reversed in April. Hence, it has also cut salaries of pilots by 15 percent for a period of three months with effect from May.
In addition, the airline has also implemented a mandatory leave without pay program for 1.5 days to 5 days. However, most pilots are facing a mandatory leave without pay for 5 days. This measure is also expected to be valid for a period of three months as of now.
The airline had recently cut the salaries of the pilots who were “not yet released” or who are undergoing training by 50 percent.
It is important to note that IndiGo is considered to be the airline with the best balance sheet in India. As of December 2019, IndiGo had a total cash reserve of Rs 20,068.7 crore including Rs 10,655.9 crore of restricted cash according to the reports published in cnbctv18.com.
“IndiGo is well-placed in terms of cash reserves ($1.13 billion of free cash and $1.33 billion of restricted cash) compared with other Indian carriers. However, it too is not immune to risks in the event of a prolonged crisis,” CAPA India had said in its report on May 1.
