The major impact on the aviation of coronavirus has led IndiGo to decide to reduce its number of employees by 10%. This is the first time that the only cash-rich airline in India has chosen to take such a step towards surviving the downturn. IndiGo hires about 24,000 people. The expense to employees in the fiscal year 2019-20 was Rs 4,395.4 crore. The airline won't lay off any of their more than 3,000 pilots.
All Indian carriers are struggling to survive, and this sector has so far been granted no relief by the government. On the other hand, after a two-month suspension, jet fuel prices were sharply hiked after schedule domestic flights were permitted to resume on May 25.
"... Flying through this economic storm is unlikely for our organization without making some sacrifices to support our business operations. Therefore, after thoroughly assessing and analyzing all potential scenarios, it is clear that 10 percent of our staff would need to be given a painful adieu. This is the first time we have performed such a difficult operation in IndiGo history.
This is indeed a very unfortunate turn of events from the optimistic growth trajectory that we sculpted for ourselves only six months ago; but this pandemic has forced us to re-evaluate our best laid plans, "said a note from IndiGo CEO Ronojoy Dutta on Monday.
IndiGo has provided a '6E care plan' for the affected workers in which they will earn notice pay instead of notice available to them and severance pay measured as one month of CTC for each completed year of service, subject to a maximum duration of 12 months. "At least, an affected employee should earn a gross salary of at least three months, including any of the above payments," the note said.