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Pandemic Fallout: IndiGo To Lay Off Over 2,300 Employees

by GoNews Desk 3 months ago Views 583
Pandemic Fallout: Indigo To Lay Off Over 2,300 Emp
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Owing to the economic crisis caused by the Coronavirus pandemic, the country's largest airline company IndiGo has decided to lay off 10 percent of its employees out of jobs.

Airlines Chief Executive Officer Ronojoy Dutta said via e-mail that "From where things stand currently, it is impossible for our company to fly through this economic storm without making some sacrifices, in order to sustain our business operations.”

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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 for the first time in the history of IndiGo that we have undertaken such a painful measure," he added.

Indigo Airlines accounts for about 50 per cent of the aviation industry in the country and is also the largest carrier. According to the last financial year, there were 23, 531 employees on the payroll of Indigo Airlines. It is believed that the cost of retrenchment of 10 percent employees will fall on over 2,300 employees.

Domestic flights were started across the country from May 25, but only 30 per cent of the flights have resumed operations in view of increasing infection prevention and withdrawal of lockdown in all states. People are still avoiding traveling due to the growing fear of getting infected.

The International Air Transport Association estimates that the aviation sector is likely to suffer heavy losses due to this epidemic. CRISIL claims that between FY 2020 and FY 2022, the Indian aviation sector could suffer a loss of up to Rs 1.30 lakh crore.

Even before this decision of Indigo Airlines, other airlines have sent their employees on leave without salary and these numbers are increasing every month. Go Air has kept its employees on leave without pay since April. SpiceJet is also giving money to the employees according to the work hours, along with holidays.

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