NEW DELHI: Vistara, a joint venture between Tata Sons and Singapore Airlines, on Tuesday said its chief executive Leslie Thng will take a 20% monthly pay cut between 1 July and 31 December due to the ongoing covid-19 pandemic that has hit airline operations.
“The rest of Vistara's senior staff including members of the management will take a 15% pay cut every month, while those in mid to junior-mid levels will take 10% pay cut in this period. Employees at the junior level (those with monthly CTC equal to or more than INR 50,000) will be affected by a 5% monthly pay cut. About 60% of our employees are not impacted by the pay cut," a Vistara spokesperson said.
The scheme does not apply to pilots as their base flying allowance was reduced to 20 hours from 70 hours in May, and this continues till December, the spokesperson added.
Indian aviation sector has been hit hard by the ongoing pandemic even as passenger demand is expected to remain muted for several months.
Air passenger traffic at Indian airports is expected to remain under pressure in the first half of FY21 and a recovery is likely in the second half depending upon covid containment, rating agency Icra said in a report earlier in June.
"Passenger traffic across India is estimated to decline by 45-50% in FY21. International travel will be dependent on lifting of travel restrictions by countries, which is likely to happen in phases," the report added.
The ongoing pandemic continues to adversely impact our financial performance, as we are operating on a significantly reduced network since resumption of domestic flights amid low demand, a Vistara spokesperson said.
"Vistara is making every effort to save jobs of more than 4,000 of its people while conserving cash and pursuing to reduce operational expenditures, which includes staff costs," the spokesperson added.