Budget airline SpiceJet Ltd. has decided to cut March salaries of all its employees by 10-30 percent and Chairman Ajay Singh's by 30 percent, in the wake of Covid-19 pandemic in India.
The 21-day shutdown in India to contain the spread of the novel coronavirus outbreak has resulted in grounding of all flights—both domestic and international.
"SpiceJet management has decided to implement a pay cut between 10-30 percent in March across our employee base. Our Chairman and Managing Director (Ajay singh), in fact, has opted for the highest cut of 30 percent in compensation," the airline said in a communication to its staff on Tuesday.
Other budget carriers IndiGo, operated by InterGlobe Aviation Ltd., and Wadia Group's GoAir have already announced similar move earlier.
"These are extremely tough time and call for appropriate and exceptional measures to sale through the exceptional challenge," SpiceJet said. As tough as it seems, most Indian carriers have already announced a pay cut for their employees, it said.
"Unfortunately SpiceJet is not too immune to the situation which has unquestionably affected the airlines in the most severe form across the globe.
"Therefore in our bid to stay lean, and under absolutely unavoidable circumstances, we have been forced to take certain bold decisions, which will help the SpiceJet family surmount these difficult times," the letter said.
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