To survive the situation, the company undertook a number of measures such as pay cuts, leave without pay and various other costs, but such measures were not enough to offset the decline in revenues, Dutta stated.

While Airlines across the globe have been struggling hard after the collapse in demand for flights due to COVID- 19, Indian airline - IndiGo revealed how it has been grappling to curb the impact of the pandemic. 

IndiGo’s CEO, Ronojoy Dutta informs that the current pandemic has unfavourably impacted the aviation industry. IndiGo is flying only a small percentage of its full fleet of 250 airplanes. 

The country’s largest airline has announces to lay off 10 per cent of its workforce. Dutta said that the layoffs were imperative to offset the decline in revenues because of the COVID-19 disruption. “And 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. 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,” the CEO added. 

To survive the situation, the company undertook a number of measures such as pay cuts, leave without pay and various other costs, but such measures were not enough to offset the decline in revenues, Dutta stated.

To help the impacted employees’ tide over the uncertainties emanating from this decision, the airlines announces '6E care package' for the impacted employees to breeze through the ambiguities emerging from this decision. They will be paid 'notice pay in lieu of serving notice applicable to them', apart from a severance pay which will be calculated as one month of CTC (cost to company) for every completed year of service, subject to a maximum of 12 months, while their insurance coverage will be extended till December 2020.

Furthermore, the employees will receive at least three months’ gross salary and other aids such as gratuity, leave encashment and longevity bonus (for cabin crew) including other things. Medical Insurance coverage for impacted employees will be extended until December 2020. Additionally, the airline will provide professional assistance to employees while ensuring an ‘Outplacement Allowance’ which will enable them to explore career opportunities, outside IndiGo. Also, the talent directory will reach out to the employees as and when the operations get back on track. In like manner, each impacted employee will receive a personalised recommendation to vouch for their professional credentials. 

Apart from that, the airline will emotionally assist the affected employees to sail through these challenging times by following an ‘Assistance Program’. In addition, should the impacted employees need to travel back to their hometown or base location, the company will help them with a one way confirmed air ticket. 

“This has been one of the toughest decisions that we have had to take and we are ensuring that the transition process for the impacted employees is carried out seamlessly, professionally; and with the utmost respect and compassion,” Dutta said.

(With Inputs from Abhilasha Singh)