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Last Updated : Mar 26, 2020 09:58 AM IST | Source: Moneycontrol.com

Coronavirus lockdown | Airlines ask govt to help clear staff's salaries: Report

Domestic airlines have suspended their operations till April 14, amid a 21-day nationwide lockdown.


Hurt by the coronavirus outbreak, airlines have asked for the government's help to pay their employees' salaries, according to a Business Standard report.

Chief executive officers (CEOs) of airlines have asked the government to pay 50 percent of their staff's salaries for three months, sources told the publication.

Moneycontrol could not independently verify the story.

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The Directorate General of Civil Aviation (DGCA) has instructed airlines to suspend domestic flights till March 31.

But, domestic carriers have suspended their operations till April 14 amid a 21-day nationwide lockdown.

Coronavirus India LIVE Updates

The Ministry of Labour and Employment has said companies shouldn't lay off employees if they have not been able to work during the outbreak of the novel coronavirus, aka COVID-19.

“In the backdrop of such challenging situations, all the employees of public or private establishments are advised to extend their coordination by not terminating their employees — particularly casual or contract workers for their job or reduce their wages,” the advisory said.

Executives of airlines told Business Standard that since their margins are slim and they are dependent on cash flows, paying their employees might be difficult.

Even after flights resume on April 15, weak consumer demand may cause airlines to ground some aircraft, the report said.

“The period of pain has just started. It is not that as soon as the ban lifts we will see full flights. It will take at least six months for customer confidence to return. There is an urgent need for government intervention,” an executive told the publication.

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First Published on Mar 26, 2020 09:58 am
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