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Last Updated : Apr 01, 2020 06:55 PM IST | Source:

Coronavirus impact | After pay cut, GoAir defers part of March salary

Move necessary to save resources and prepare for restarting operations, says Vinay Dube in mail to employees

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Budget carrier GoAir has deferred a portion of March salary of its employees to April, CEO Vinay Dube has informed  in a mail to the employees.

This is apart from the pay cut that the airline had earlier announced. While the top leadership had taken a 50 percent cut in the salaries, rest of the staff saw their income cut by 5 percent to 25 percent.

"Yesterday, salaries were posted to each of your bank accounts.  All employees in Grade D and below received salaries in their entirety," Dube wrote in the mail.


"The rest of you will see less than what you are normally used to seeing as a result of the reduction in pay I had announced earlier, but also because we have been forced to defer a portion of your accrued salaries to April," he added.

Dube, an industry veteran, pointed out that the airline is ensuring that it has enough resources to restart operations whenever the lockdown is lifted. As of now, the lockdown ends April 14.

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Apart from GoAir, IndiGo, SpiceJet and Air India have also announced pay cuts. May of their employees have been sent on leave without pay. GoAir had also terminated the contracts of its expat pilots. 

The industry is facing an unprecedented crisis, which could lead to the smaller airlines fighting for survival, advisory firm CAPA India had warned.

In his mail to employees, Dube added that the company hopes there will be help coming from the government.

He added:  " I am acutely aware of the pain this decision will inflict on you and your families, but I don’t see another way for us to get through this crisis and provide you with longer term employment.

"We need to plan GoAir’s finances on the assumption that demand for air travel will not rebound the day our skies open.  It will take time for India to feel comfortable to travel again, and certainly longer for us to open international flights."

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First Published on Apr 1, 2020 06:55 pm
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