Amid the coronavirus COVID-19 crisis in the aviation sector, Vistara Airlines on Tuesday announced that its CEO Leslie Thng will take a 20 per cent salary cut from July 2020 to December 2020. The move comes after the airline announced that it is operating with less than it is 30 per cent capacity and currently getting back to normalcy in operations and network which may take a couple of months.
According to a Vistara spokesperson, “The ongoing pandemic continues to adversely impact our financial performance, as we are operating on a significantly reduced network since the resumption of domestic flights amid low demand. Vistara is making every effort to save jobs of more than 4,000 of its people while conserving cash and pursuing to reduce operational expenditures, which includes staff costs."
"From 1 July 2020 to 31 December 2020, Vistara CEO will take a 20% monthly pay cut and the company shall implement graded monthly pay cuts for staff at other levels. The rest of Vistara's senior staff including members of the management will take a 15% pay cut every month, while those in mid to junior-mid levels will take 10% pay cut in this period," the spokesperson added.
"Employees at the junior level (those with monthly CTC equal to or more than INR 50,000) will be affected by a 5% monthly pay cut. About 60% of our employees are not impacted by the pay cut. This scheme does not apply to our pilots as their Base Flying Allowance was reduced from 70 hours to 20 hours earlier in May 2020 which continues till December 2020,” further added the spokesperson.