With the aviation sector taking a battering due to the lockdown, SpiceJet and GoAir have put employees on leave without pay.
PTI reported on Sunday that SpiceJet was sending employees earning more than Rs 50,000 on leave without pay for three months. Earlier, the budget carrier sent employees on leave without pay from March 25 to 31.
In a statement, SpiceJet said that some members of the engineering team have been asked to go on leave without pay.
“With reference to a story run by PTI, it is clarified that no company-wide decision has been taken on the issue of salary cuts or leave without pay at SpiceJet for the month of April 2020. A limited number of staff from the engineering team has been put on leave without pay for a month each on a rotational basis,” SpiceJet said.
Reports stated that 85-90% of GoAir’s staff, about 5,500 people, will go without pay for the duration of the lockdown. GoAir refused to confirm or deny the development to TNM.
In a letter to employees, GoAir said that they have to put employees on leave without pay from March 25 to May 3, and will have to extend the duration if required.
The airline also said that employee benefits, such as insurance, will be valid for the time they are on leave without pay. A company spokesperson confirmed the development to CNBCTV18, and said that the decision to do so was taken after they received feedback from employees that they were “ready to tide through the crisis together and are willing to work without pay during the period”.
Airlines had earlier announced pay cuts among the top management.
Commercial flights remain suspended since March 25 due to the nationwide lockdown to curb the spread of COVID-19. The lockdown, which was to end on April 14, has been extended till May 3.
Airlines in India are hoping to start operations on May 4, after the lockdown concludes on May 3. Air India opened bookings for a few routes on Sunday, following which the Ministry of Civil Aviation (MoCA) said that no decision has been taken so far regarding reopening domestic and international operations. “Airlines are advised to open their bookings only after a decision in this regard has been taken by the Government,” MoCA Minister Hardeep Singh Puri said.
The International Air Transport Association (IATA) predicted earlier this month that some 25 million jobs globally are at risk with airline shutdown due to the COVID-19 crisis. Out of the 25 million jobs at risk, 11.2 million are in Asia-Pacific, 5.6 million in Europe, 2.9 million in Latin America, 2 million in North America, 2 million in Africa and 0.9 million in the Middle East.
Last week, IATA said that airline passenger revenues are set to plunge by 55%, or $314 billion, in 2020 due to coronavirus.