SpiceJet Cuts Employee Salaries Amid Lockdown
SpiceJet decided to cut down their employees’ salaries for March as there has been a huge fall in travel Demand due to the Coronavirus lockdown
On Tuesday, the Indian airline company SpiceJet announced that the company is planning to cut down the employees’ salaries by 10%- 30% as there is a huge downfall in travel demand in the country due to the lockdown in the country because of the widespread Coronavirus outbreak.
Ajay Singh, MD cum Chairman of SpiceJet announced regarding the salary cut of employees and told them that they are adopting this measure in order to ensure no employees in SpiceJet gets retrenched. India’s biggest airline company, Indigo had also made an announcement in the beginning of this month their decision of cutting down the employees’ salaries by 5% -20%. All these measures are adopted by the company as an outcome of the three week lockdown in the country which is planned to end by the mid of April.
Although many airline companies across the globe adopted such cutdown in salaries to have control over the revenue generated in this crisis, still there has been a huge downfall in the global airline revenue by $252 billion this year. This estimate of cost was determined by the International Air Transport Association (IATA).