Livemint wants to start sending you push notifications. Click allow to subscribe
Subscribe
My Reads e-paper Newsletters IFSC Code Finder New MintGenie
Subscribe
OPEN APP
Home >Companies >News >IndiGo tells staff to go on leave without pay

IndiGo tells staff to go on leave without pay

Premium
The airline had imposed LWP for its workforce last year due to the outbreak of covid-19 but subsequently withdrew this as bookings picked up earlier in 2021.

  • IndiGo said in an email to staff that all cabin crew would undertake 1.5 days of leave without pay for the next three months effective 1 June 2021
  • The number of days applicable for non-crew inflight employees will be informed by their vertical heads shortly, it said

NEW DELHI : InterGlobe Aviation Ltd-operated IndiGo, the country's largest domestic airline, has reimposed compulsory leave without pay (LWP) for all its employees amid the second wave of covid-19, which has resulted in a sharp decline in passenger traffic and revenues of airlines.

InterGlobe Aviation Ltd-operated IndiGo, the country's largest domestic airline, has reimposed compulsory leave without pay (LWP) for all its employees amid the second wave of covid-19, which has resulted in a sharp decline in passenger traffic and revenues of airlines.

The airline had imposed LWP for its workforce last year due to the outbreak of covid-19 but subsequently withdrew this as bookings picked up earlier in 2021.

The airline had imposed LWP for its workforce last year due to the outbreak of covid-19 but subsequently withdrew this as bookings picked up earlier in 2021.

Subscribe to Continue Reading

"Unfortunately due to the reduced capacity we will have to institute an LWP programme for all employees, which would range from 1.5 to 4 days depending on the employee group (except for Band A&B)," the airline informed its staff in an email on Monday.

"All cabin crew would undertake 1.5 days of LWP for the next three months effective 1 June,2021. Number of days applicable for non-crew inflight employees will be informed by their vertical heads shortly," it said.

A copy of this email has been reviewed by Mint.

The ministry of civil aviation (MoCA) recently informed the airlines that scheduled airlines in India will be able to sell seats up to 50% of their total capacity on domestic flights, down from 80%, from 1 June, citing the second wave of coronavirus that led to a high number of infections and deaths across the country.

"The second wave has been difficult for all of us and has also resulted in reduction in passenger loads. As a result our commercial schedule had to be curtailed accordingly," IndiGo added in the email to employees.

Indian airlines have been adversely impacted by the covid-19 pandemic, which has led to a loss of passenger traffic demand. The second wave of covid-19 has further reversed the gains made by airlines during the January-March 2021 period.

Collectively, Indian airlines will incur net losses of about 21,000 crore this financial year following the widespread disruptions caused by the pandemic and would require additional funding of up to 37,000 crore through FY23 to recover from their losses and debt, rating agency ICRA said in a recent report.

"We have been focusing on our vaccination drive and we have been able to facilitate vaccination for our employees at various stations. As on date, approximately 49% of our cabin crew have been administered their 1st dose of vaccine," IndiGo said in the email.

Apart from IndiGo, Ajay Singh-led no-frills carrier SpiceJet Limited has also recently reverted to a salary structure based on the hours worked. It has also deferred salaries for May for a large section of its workforce.

When contacted, an IndiGo spokesperson declined to comment on the development.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!