IndiGo decides on reducing its employee count by 10% due to the huge impact Covid-19 is having on aviation. In the initial days of the pandemic, the airline had been very sympathetic to their employees and was paying them in full.
IndiGo’s CEO Ronjoy Dutta said that from where things stand presently, it is unfeasible for our company to fly through this economic storm without making some forfeits in order to sustain our business operations.
To get through the recession, India’s only cash-rich airline has decided to take such a step for the first time. IndiGo is flying just a small percentage of its full fleet of 250 airplanes presently. Dutta also said that it is clear that they will need to bid a painful goodbye to 10 percent of their workforce after thoroughly evaluating and assessing all feasible scenarios.
IndiGo has around 24,000 employees. In spite of the disturbance in business, IndiGo was one of the few airlines worldwide which paid full salaries for the month of March and April 2020. In fiscal 2019-20, its employee cost was Rs. 4,395.4 crore.
IndiGo also had to take up a number of measures such as Pay Cuts, Leave without Pay, and numerous other costs, but sadly, these cost savings are clearly not sufficient to balance the downturn in revenues.
The government has so far not given any reassurance to this sector and all Indian carriers are struggling to survive.
This is indeed a very unfortunate turn of events from the optimistic growth track they had carved out for ourselves just six months ago, but this pandemic has enforced us to reassess our best-laid plans, said Dutta.