This airline is cutting up to 30 pc salary of employees in March - Here is why

In a major development, budget carrier SpiceJet has decided to cut up to 30 per cent salary of its employees in March with Chairman Ajay Singh opting for highest 30 per cent trimming in compensation, the airline said in an e-mail communication to the staff on Tuesday. Moreover, the employees will also be treated as "on leave without pay" for the March 25-31 phase due to the suspension of air passenger services during the period, said the airline, which offered its aircraft and crew to the government for any "humanitarian mission" last week.

"Unfortunately SpiceJet is not too immune to the situation which has unquestionably affected the airlines in the most severe form across the globe. Therefore in our bid to stay lean, and under absolutely unavoidable circumstances, we have been forced to take certain bold decisions, which will help the SpiceJet family surmount these difficult times," Human Resource department of the airline told employees in the e-mail.

Significantly, the pay-cut announcement coincides with the termination of service contracts of over a dozen expat pilots with the airline, as per a source. "These are extremely tough time and call for appropriate and exceptional measures to sale through the exceptional challenge. As tough as it seems, most Indian carriers have already announced a pay cut for their employees.

SpiceJet management has decided to implement a pay cut between 10-30 per cent in March across our employee base. Our Chairman and Managing Director (Ajay Singh), in fact, has opted for the highest cut of 30 per cent in compensation, SpiceJet said.

It, however, spared employees in the lowest pay grades from any pay cut.