COVID-19 effect: SpiceJet to pay part salaries to over 92 pc employees in April

Amid the coronavirus-induced lockdown, SpiceJet said on Thursday its primary revenue source is drying as no passenger flights have operated for over a month and therefore it will pay part salaries to over 92 per cent of its employees in April.

In a press release, the budget carrier said it has decided that there would be no job cuts at this time.

"As a fair measure to cater to the requirement of our employees during this complete lockdown situation, the company has devised a structure where all employees will be paid according to the work hours contributed while maintaining basic thresholds," SpiceJet noted.

The airline had told its pilots on Wednesday that they will not be paid salaries for April and May, adding that those who have been operating cargo flights will get paid for the number of hours flown.

SpiceJet had in March cut between 10-30 per cent salaries of its senior and mid-level employees.

India has been under a lockdown since March 25 to curb the spread of COVID-19. All commercial passenger flights have been suspended for this period. However, cargo flights, medical evacuation flights and special flights permitted by the aviation regulator DGCA are allowed to operate.

The Indian aviation industry has been hit hard due to the lockdown and travel restrictions imposed due to the coronavirus pandemic.

Government-run Air India has cut the salaries of its employees by 10 per cent, GoAir has sent the majority of its employees on leave without pay, AirAsia India has cut the salaries of its senior employees by up to 20 per cent and Vistara has sent its senior employees on leave without pay for up to six days in April.

However, IndiGo decided last week to roll back the pay cuts which were announced earlier for senior staff members for the month of April in deference to the "government's wishes".

SpiceJet said on Thursday: "While a number of airlines the world over have been forced to retrench employees and withhold salaries, SpiceJet with its limited cargo operations during the lockdown period, will pay part salaries to over 92% of its employees."

The airline added: "In these extremely challenging times when no passenger flights have operated for over a month resulting in our primary revenue source drying up completely, SpiceJet has decided that there would be no job cuts at the airline at this time". The novel coronavirus has infected more than 33,000 people and killed around 1,070 people in the country till now.

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