Covid-19: GoAir is third airline to cut salaries, all staff to take hit

GoAir will cut the wages of all its employees for the month of March after all domestic flights in the country fail.

GoAir is the third airline to announce a pay cut after IndiGo and Air India that cut wages to deal with the Covid-19 crisis.

“Under the current conditions in which we find ourselves, we have no choice but to extend the wage cuts for all of us for the month of March. We will make sure that the lowest wages suffer the least”, wrote airline president and CEO Vinay Dube. in an email today. The letter did not disclose the extent of the salary reduction for each category.

The drop in wages comes at a time when national airlines are asking for urgent government funding to pay 50% of staff salaries for the next three months. Domestic flights were closed at midnight on March 24 and the closure will remain in effect until April 14.

The Wadia group airline had previously set up unpaid leave for part of its staff and dismissed foreign pilots to cut costs. Later, the month’s unpaid leave was extended to Indian pilots in training or to those who were not released for active duty.

“In GoAir’s 14 years of existence, we have never cut employee wages or deferred salary payments. When the tide turns again – and it will – GoAir will find a way to compensate you all for the sacrifice you are being asked to make. Right now, given the solid fundamentals of GoAir, I think this is not that far away, “said Mr. Dube.

“How can the airline reduce March wages while we have been working for 24 days,” asked an employee. Experts have said, however, that cutting wages is a sensible thing to do in the current situation to preserve liquidity.

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