SpiceJet Ltd on Tuesday said it would cut employee salaries by 10 per cent to 30 per cent in March as a 21-day nationwide lockdown to contain the spread of the coronavirus crimps travel demand.
“The Covid-19 pandemic and the subsequent (India) lockdown have forced us to take some tough measures to ensure that no one at SpiceJet is retrenched,” said Chairman and Managing Director Ajay Singh, adding he had opted to take a 30 per cent pay cut.
Earlier this month, the country’s biggest airline IndiGo said in an internal memo that it would cut the salaries of most employees by between 5 per cent and 20 per cent.
India is currently on a three-week lockdown, which is set to end by mid-April.
Global airlines have urged the world’s major economies to act quickly to prevent damage to the industry by the pandemic, which according to the International Air Transport Association will cost $252 billion in lost revenues this year.
Notably, the Maharashtra government too has declared a pay cut ranging between 25 per cent and 50 per cent for government employees.