COVID-19: Air India says 'insurmountable' dip in revenues, issues various cost-cutting measures

Air India informed its employees on Friday that it is taking various cost-cutting measures, including decreasing allowances for all employees, except cabin crew, by 10 per cent for three months as re is an "insurmountable dip" in revenues due to coronavirus outbreak.

se measures have been anunced days after GoAir anunced layoff of expat pilots and IndiGo declared pay cut for its senior employees due to "precipitous" fall in revenues amid pandemic.

"In wake of recent global developments and serious impact of COVID-19 pandemic...re is an insurmountable dip in revenue which calls for stringent measures to reduced our costs," said an Air India office order to all its employees.

PTI has accessed order.

As per order, airline would undertake negotiations to review all agreements with lessors and hotels to reduce ir rates.

"Special drive to be undertaken to recover all pending dues from government departments in a time-bound manner. An aggressive action is required by concerned offices in region as well at headquarters," it added.

"It was agreed to implement 10 per cent deduction in allowances (excluding basic pay, house rent allowance and variable dearness allowance) in respect of all employees, except cabin crew, for a period of three months effective March 2020 salary," it ted.