NEW DELHI: Hit hard by the COVID-19 pandemic, budget carrier SpiceJet on Tuesday announced a pay cut of up to 30 per cent for all employees in March. The airline, however, said it won’t be cutting jobs even as all its flights remain suspended till April 14.
“The bold measures are in the best interest for everyone at SpiceJet as it aims to sail through the crisis with zero retrenchment,” SpiceJet said in a statement. Assuring its employees in the lowest pay grades that they will remain unaffected by the decision, Ajay Singh, chairman and managing director, SpiceJet, said: “What we are facing is a global phenomenon and no airline in the world is immune to the impact.
Tough times don’t last, tough people do.” Singh has also opted to take the highest 30 per cent pay cut.
Other airlines such as GoAir, IndiGo and Air India have also enforced salary cuts earlier to minimise the financial burden. Experts believe if the Covid-19 crisis deepens, the aviation sector will be left with no choice but to cut their employee base. The Centre for Asia Pacific Aviation estimates IndiGo and SpiceJet losses at up to $1.5 billion across the fourth quarter of FY20 and the first quarter of FY21.