NEW DELHI :
Wadia group-owned budget carrier GoAir today announced that all its employees will have to tolerate a pay cut in March. The news comes after all domestic and international passenger flights operating in the country have been cancelled to check the spread of coronavirus. The nationwide lockdown will last for 21 days from today.
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. "Under the current conditions we find ourselves in we are left with no choice but to extend salary cuts for all of us for the month of March. We will ensure that the lowest pay grades suffer the least," Dube said.
GoAir has already laid off its expat pilots, introduced leave without pay for its employees and announced paycut of up to 50% for its top leadership.
Another budget airline IndiGo has announced a pay cut of up to 25% for its senior employees. Air India has stated that due to "insurmountable dip" in revenues, it will cut allowances of all employees -- except cabin crew members -- by 10% for next three months.
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.