Indigo Will Pay 100% Salary To All Employees As Leave Without Pay Removed; Asks Them To Come Back To Work
In a positive development coming in, leading airlines Indigo has canceled leave without pay for all employees, effective January 1st, 2021.
And they have asked them to return to work, immedietely.
This shows the confidence which domestic airlines now has, on recovery, and surge in demand.
Will other airlines follow suit?
Indigo Removes Leave Without Pay For All Employees
CEO Ronojoy Dutta has declared that effctive January 1st, 2020, all employees will get full salary.
There will be no leave without pay for any employee now.
In a letter to entire workforce, CEO of Indigo stated that they are confident about picking up more business, and hence, “we are removing Leave Without Pay across all departments from January 1, 2021.”
This is a big, positive sign towards overall recovery of the aviation sector in India, and shows that demand is indeed picking up.
Earlier, Indigo airlines had imposed leave without pay for several employees, ranging from 3 days a month to upto 10 days a month, which is 30% deduction in salary
But now, all employees will get full salary.
Indigo Determined To Move Forward
During the lockdown, as demand fell suddenly, and all flights were cancelled, Indigo had also fired 10% of their workforce.
Note here, that in the 2nd quarter, Indigo’s overall losses increased to Rs 1194 crore, which was Rs 1062 crore a year back.
But domestic airlines, in general, have reported increased traffic and bookings.
In the month of October, overall domestic bookings increased by a healthy 33.67%, and the trend is continued in November and December as well.
Indigo CEO expressed confidence that their overall traffic wil reach pre-Covid levels by early 2021.
He said, “At this point of time it looks like we are on a path to a graduated and measured recovery, and we are hopeful that the government will allow us to fly 100 percent of our domestic capacity by early next year,”
We will keep you updated, as more details come in.