Vistara on Tuesday introduced a pay reduce between 5 to 20 per cent until December this 12 months for round 40 per cent of its staff as money movement continues to be adversely affected as a result of coronavirus (COVID-19) pandemic.
The full-service provider has greater than 4,000 staff on its payroll.
“About 60 per cent of our employees are not impacted by the pay cut,” a Vistara spokesperson stated.
Vistara CEO Leslie Thng instructed staff in an e mail: “From 1st July, 2020, to 31st December, 2020, I will take a 20 per cent pay cut and we will be implementing a monthly pay cut scheme for staff (except for pilots as follows): 1) 15 per cent pay cut for staff in Level 5 and 4, 2) 10 per cent pay cut for staff in Level 3 and 2, and licensed engineers in Level 1C, 3) 5 per cent 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 have been getting base flying allowance, which is a hard and fast element of the wage, for 70 hours monthly.
Mr Thng instructed staff the airline is working at lower than 30 per cent of its unique community and the passenger masses on its flights are additionally not as robust as earlier than 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, Mr Thng had introduced that senior staff should go on obligatory go away with out pay (LWP) for as much as 4 days monthly in May and June. Vistara had despatched the identical set of senior staff on obligatory LWP for as much as six days in April.
After a spot of two months, India resumed its home passenger flights on May 25. Scheduled worldwide passenger flights proceed to stay suspended within the nation.
The aviation sector has been hit exhausting by the pandemic and all airways in India have resorted to cost-cutting measures like pay cuts to outlive the disaster.
On Tuesday, the Vistara spokesperson had stated, “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 stated.