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10% Layoffs At IndiGo, India's Biggest Private Airline

IndiGo will lay off 10 per cent of its staff, the airline said on Monday, saying that the coronavirus pandemic has forced it to re-evaluate its “best-laid plans”. Chief executive officer Ronojoy Dutta said IndiGo had “understood the gravity of the situation right at the start of this crisis”. The layoffs by the country’s top carrier comes amid months of restrictions imposed by the government to curb the COVID-19 outbreak, which has affected the civil aviation industry, hurt crude oil prices and forced businesses across industries to trim operations.

  1. “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.
  2. “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.
  3. It was critical for the airline to minimise the impact of the pandemic on its employees, he said, asserting that IndiGo was one of the few airlines globally which paid full salaries for the month of March and April 2020 despite the disruption in business.
  4. The airline also had to “undertake a number of measures such as pay cuts, leave without pay and various other costs, “but unfortunately, these cost savings are clearly not enough to offset the decline in revenues”, Mr Dutta said in a statement.
  5. He said that even now, IndiGo is flying only a small percentage of its full fleet of 250 aircraft.
  6. “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.
  7. IndiGo had 23,531 employees on its payroll at the end of March 2019.
  8. Though airlines in the country resumed domestic operations on May 25 after a gap of two months, passenger loads – a key measure of an airline’s profitability – continue to be low.
  9. Earlier this month, IndiGo – owned and operated by InterGlobe Aviation – had announced a 25 per cent discount on airfare to doctors and nurses till the end of 2020.
  10. InterGlobe Aviation had reported a net loss of Rs 871 crore for the quarter ended March 31, amid a nearly 76 per cent surge in repair and maintenance expenses.

 

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