IndiGo lays off 10% of its staff as aviation crisis deepens

IndiGo, India’s largest private airlines, has decided to lay off 10% of its workforce due to the economic crisis induced by COVID-19 pandemic, its chief executive officer Ronojoy Dutta said on Monday.

 “It is for the first time in the history of IndiGo that we have undertaken such a painful measure,” Dutta said in a statement. “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,” Dutta said.

“Therefore, after carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10% 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 has created a “6E care package” for the impacted employees. Under the package, the employees will be given notice pay in lieu of serving notice applicable to them and severance pay which will be calculated as one month of CTC for every completed year of service, subject to a maximum of 12 months. “At a minimum, an impacted employee will receive at least three months’ gross salary, including both the above payments,” the statement read.

All the airlines have been facing a severe revenue crunch after the coronavirus outbreak grounded their business. At present, the domestic airlines can only operate with 45% capacity as per safety guidelines. IndiGo said the airline is flying only a small percentage of its full fleet of 250 airplanes.

“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. We would like to express our heartfelt gratitude and sincere thanks to all our people who have stood by us through thick and thin; and we are confident that both individually as well as collectively, we will emerge stronger out of this crisis,” the note added.