AGENCIES, New Delhi: In times when the domestic airline industry is reeling under the impact of the coronavirus pandemic, IndiGo chief executive officer (CEO) Ronojoy Dutta said on Thursday the airline was cutting the pay of senior employees.
The announcement comes at a time when companies are assessing the impact of the fast-spreading coronavirus pandemic on business. The Union health ministry said earlier on Thursday that the number of coronavirus cases in India had risen to 169, after 18 fresh cases from various parts of the country. The airline’s CEO said he would himself take the highest cut of 25 per cent.
“With the precipitous drop in revenues, the very survival of the airline industry is now at stake,” the IndiGo CEO said in an email to employees. “We have to pay careful attention to our cash flow so that we do not run out of money.”
“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,” Dutta wrote in the letter.
The IndiGo CEO said he knew how hard it was for families to take a cut in take-home pay.