The country’s premier airline company Indigo will end the leave without pay (LWP) program from 1 January 2021. Company CEO Ronjoy Dutta announced on Thursday that this would be done for senior employees. The company hopes that doing so will improve their revenue model.
The visits were banned due to the Corona virus epidemic. CEO Dutta said on 8 May, the limited and graded unpaid leave program was applicable to all employees. This program was not applicable to the lowest group A. The aviation sector has been severely affected by Corona. All airlines have adopted cost-cutting measures. In this, measures like Pay Cut, LWP, are prominent.
On 8 May, IndiGo reduced the salaries of its senior employees by 5 to 25 percent. No-pay leave IndiGo started in May and ranged from 1.5 to 5 days depending on the group of employees. These cuts are still in force. On Thursday, Dutta wrote to his employees in an e-mail, “At this time we are moving towards balanced progress.” We hope that by early next year the government will allow us to operate with 100 percent capacity.
Currently Indian airlines operate with 80 percent capacity. Significantly, international flights have been stopped since 23 March. Special international flights are being operated under the Vanda Bharat Mission from the month of May.
Dutta said that the situation of international traffic is still challenging. This matter is worrying. He wrote in his e-mail that the conditions may not have been very good but we are moving in the right direction. At the same time, he wrote, it is now in the hands of employees to work together to ensure that the airline returns to profit by the first half of next year.