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Last Updated : Jun 30, 2020 05:10 PM IST | Source: PTI

Coronavirus impact | Vistara announces 5-20% pay cut for 40% employees till December

The full-service carrier has more than 4,000 employees on its payroll.


With the aviation industry adversely affected by the coronavirus pandemic, Vistara on June 30 announced a pay cut between 5 percent and 20 percent till December for around 40 percent of its employees due to cash flow crunch.

The full-service carrier has more than 4,000 employees on its payroll.

"About 60 percent of our employees are not impacted by the pay cut," a Vistara spokesperson said.


Vistara CEO Leslie Thng told employees in an email: "From 1st July, 2020, to 31st December, 2020, I will take a 20 percent pay cut and we will be implementing a monthly pay cut scheme for staff (except for pilots as follows): 1) 15 percent pay cut for staff in Level 5 and 4, 2) 10 percent pay cut for staff in Level 3 and 2, and licensed engineers in Level 1C, 3) 5 percent pay cut for staff in Level 1 with monthly CTC equal or more than Rs 50,000."

"For pilots, we will continue with the reduction of monthly base flying allowance to 20 hours for July to December 2020. Allowances will also be adjusted for pilots under certain categories of training," he added.

Till April, Vistara's pilots were getting base flying allowance, which is a fixed component of the salary, for 70 hours per month.

Thng told employees the airline is operating at less than 30 percent of its original network and the passenger loads on its flights are also not as strong as before the coronavirus-induced lockdown.

"Our financial performance will continue to be negatively affected by COVID-19 as travel confidence and demand will take a while to fully recover to pre COVID-19 level," he added.

On May 5, Thng had announced that senior employees will have to go on compulsory leave without pay (LWP) for up to four days per month in May and June. Vistara had sent the same set of senior employees on compulsory LWP for up to six days in April.

After a gap of two months, India resumed its domestic passenger flights on May 25. Scheduled international passenger flights continue to remain suspended in the country.

The aviation sector has been hit hard by the pandemic and all airlines in India have resorted to cost-cutting measures like pay cuts to survive the crisis.

On Tuesday, the Vistara spokesperson had said, "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."

"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 had said.

Follow our full coverage of the coronavirus pandemic here.
First Published on Jun 30, 2020 04:45 pm