Low-cost carrier, GoAir has announced that all its employees will have to bear salary cut in March. The step comes after all the domestic and international passenger flights operating in the country were asked to stop operations due to nationwide lockdown and also as a preventive measure to contain the spread of Coronavirus.
In an announcement, GoAir CEO Vinay Dube said, “all GoAir employees to have pay cut in March the company is left with no choice due to travel restrictions over Coronavirus. We will ensure that the lowest pay grades suffer the least.”
Earlier, GoAir had already laid off its foreign pilots, introduced leave without pay for its employees and announced pay cut of up to 50 per cent for its top leadership.
Not just GoAir, even other airlines in the country too are adopting this practice. Budget airline IndiGo too has announced a salary cut of up to 25 per cent for its senior employees. Another carrier Air India has announced to cut allowances of all employees, except cabin crew members — by 10% for the next three months due to insurmountable dip” in revenues.
Global airlines body IATA has said that airlines would face $252 billion-loss of passenger revenue in 2020, which would be 44% lower than 2019 figures.
