Indigo, One of the largest low-cost domestic airlines operating in India, announced retrenchment of 10% of its personnel due to impact on revenue during Covid-19 pandemic. In order to maintain the long term stability of the company, it is necessary to take appropriate steps to reduce the short term cost reduction measures. Said the CEO to staff.

‘’The company is flying only 30% of its capacity but carrying the cost of a much larger airlines”, said Ronojoy Dutta, CEO, IndiGo

Owing to this pandemic, the number of passengers has been drastically reduced which makes it difficult to maintain the cost. Hence, the CEO decided to recover the revenue by diminishing the 10% of its workforce.

However, Indigo Airlines CEO conveyed that he will make sure that the affected employees shall get their payments up to three months, gratuity, bonus, and medical insurance.

He also mentioned that this is the first time that they have taken such drastic decisions of relieving 10% of their workforce from their duties. It is necessary to take such steps, as the pandemic still has a huge impact on flight demand, Said CEO to employees on Monday.

According to a report, Other private airlines have also taken similar measures including leave without pay for employees in order to cope up with the ongoing pandemic.