COVID-19 fallout | IndiGo reimposes leave without pay policy after decline in passenger traffic

Intergloal Aviation-led IndiGo has decided to reinstate its leave without pay policy for its employees for 1.5 to four days following a decline in demand for air travel amid the second wave of COVID-19.

The airline has asked its pilots to undertake three days of leave without pay for the next three months with effect from June 1, as per a CNBC-TV18 report.

"The second wave has been difficult for all of us and has also resulted in reduction of passenger loads. As a result our commercial schedule had to be curtailed accordingly. Unfortunately, due to the reduced capacity, we will have to institute an LWP programme for all employees which would range from 1.5 to 4 days depending on the employee group (except for band A &B). All pilots would undertake 3 days of LWP for the next 3 months effective 1st June 2021," IndiGo wrote to employees on May 31, the report said.

Also Read: IndiGo sees uptick in demand, reduces leave without pay for pilots

This move by the country's only profitable airline sheds light on the stress imposed on the aviation sector in India.

In 2020, IndiGo had implemented the same policy, asking its employees to take leave without pay. It suspended this decision only a few months later after noticing signs of recovery in air travel.

IndiGo is not the only major carrier to bring back pay-related policies. On May 30, Spicejet also said it would credit salaries for employees for May on June 1, but would include a graded deferment of up to 35 percent for some.

The air traffic has once again taken a hit amid surging COVID-19 cases and restrictions on travel. Besides, the DGCA recently extended the ban on scheduled international passenger flights till June 30.

The Civil Aviation Ministry also capped the capacity for domestic flights from 80 percent to 50 percent, effective June 1. "In view of a sudden change in the number of COVID-19 cases, and decrease in the number of passengers and reduced occupancy, the existing capacity cap of 80 percent is reduced to 50 percent," the ministry said in an order.