No pay cut in April for employees, says IndiGo CEO Dutta

Only senior management executives, who had volunteered to take a cut, will see a trim in their salary

IndiGo, the country’s largest airline, has assured its employees of no cut in their April pay.

“In deference to our Government’s wishes of not reducing pay during the lockdown, we have decided not to implement the previously announced pay cuts during the month of April,” CEO Ronojoy Dutta told employees in an email on April 23.

“However, your Excom members and SVPs have volunteered to take pay cuts this month. For everyone else, you can expect your April salaries to be paid without the pay cuts,” he added.

In his March mail to employees, Dutta had talked about the need to cut costs, and this a salary cut. While he himself took a 25 percent cut, the rest of the employees saw a trim ranging from five percent to 20 percent.

The decision to retain salaries will help bring some cheer in the sector that has been grounded by COVID-19. All of IndiGo peers, including SpiceJet, GoAir and Vistara, have either cut pay or sent a large part of their staff, on leave without pay.

Two enemies

Sharing his views on the current circumstances, Dutta said, “we have two prime enemies we have to battle with. The first is the live force of the virus that is a threat to our health and the second is the dead hand of economics which is likely to dampen customer demand in the immediate future.

Reiterating that the company is focusing energies in controlling costs, Dutta said, “going forward we will be sharpening up our core competence even more.”

He added that the company had just one source of revenue at the moment, its cargo operations.

“Managing revenues is the fun and exciting part of the airline business, managing costs in a severe downturn is the dull and painful part of the business,” reflected Dutta.

The CEO added that there was once incidence of coronavirus in “our IndiGo family.”

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