IndiGo implements another round of pay cuts for senior management, pilots

CEO Ronojoy Dutta will take a pay cut of 35%, while all executives at the level of senior vice president and above will take a pay cut of 30%

India’s largest airline IndiGo has implemented another round of pay cuts for its senior management and pilots.

Chief Executive Ronojoy Dutta will take a pay cut of 35 per cent while all executives with designations of senior vice-president and above will take a pay cut of 30 per cent. Simultabeously, pilots will face a further cut of 28 per cent to their salary while vice-presidents and associate vice-presidents will face a 15 per cent cut in their salary. The latest paycuts, which mean the senior management will get between 15 per cent and 35 per cent lower monthly salaries than normal times, will be implemented from September 1, Dutta wrote in a letter to employees. 

“To cushion the impact among lower-paid employees, this time, we will increase the pay cut percentages only among the very top at the pyramid,” Dutta wrote.

The airline had recently announced to lay off 10 per cent of its staff. 

In May, IndiGo had announced one round of paycut and leave without pay for employees followed by a second round for pilots in June. “It is our intent to gradually reduce the number of days without pay as we add back more flights,” Dutta said.

Air India has proposed to send employees on leave without pay for up to five years. It has also announced a cut in allowances for pilots for up to 60 per cent. GoAir sent 80 per cent staff on leave without pay in April even after announcing an average 20 per cent paycut. SpiceJet sent a large section of cabin crew on leave without pay for three months and deducted salary by 30 per cent. It is paying pilots and cabin crews based on the number of hours they work. With its large cash buffer, IndiGo is the best positioned airline to withstand the crisis.