IndiGo To Lay Off 10% Of Its Staff

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India’s prominent low-cost airline – IndiGo will lay off 10% percent of its staff, the airline said on Monday.

As per the statement, the coronavirus pandemic has forced them to rethink their “best plans”.

CEO Ronojoy Dutta said IndiGo “understood the gravity of the situation right at the start of this crisis”.

The main layoffs of airlines in the country are due to months of restrictions imposed by the government to contain the COVID 19 outbreak.

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IndiGo, based in Gurugram, owned by InterGlobe Aviation and operated by InterGlobe Aviation, had 23,531 employees at the end of March 2019.

“From where things stand currently, it is impossible for our company to fly through this economic storm without making some sacrifices,” said IndiGo CEO Mr Dutta. 

“The current pandemic has impacted many industries around the world, amongst which aviation has been one of the sectors that has been impacted the hardest,” the IndiGo CEO added.

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“Therefore, after carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10 per cent of our workforce. It is the first time in the history of IndiGo that we have undertaken such a painful measure,” he said.

Although the airline has resumed operations, the statement says that only a small percentage of its entire fleet is flying 250 aircraft.

In the meantime, the airline has announced a “6E Care Package” for affected employees.

Affected employees receive termination compensation instead of the notice period that applies to them. This is calculated based on the gross salary based on the employee’s notice period.

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Also Read – IndiGo Introduce ‘6E Double Seat’ Book 2 Seats For 1 Passenger

In addition, affected employees receive a severance payment, which is calculated as one month of CTC for each completed year of service, up to a maximum of 12 months. This leads to higher cash on hand compared to gross salary calculations

The company also insures other financial support such as annual bonus / PLI benefits, longevity bonus, vacation redemptions, tips, etc.

Plus, affected employees receive a one-way plane ticket to their hometown from their current base location, assured the company.

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It was crucial for the airline to minimize the impact of the pandemic on its employees.

IndiGo was one of the few airlines in the world that paid full salaries for March and April 2020 despite business disruptions.


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Manish Khandelwal
Manish Khandelwal

Manish Khandelwal, a travel-tech enthusiast with over a decade of experience in the travel industry. Founder and Editor-in-Chief of Travelobiz.com, he's passionate about writing.

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