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Vistara CEO to take 20% salary cut for July-December, up to 15% pay cut for other employees
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.
Updated : Jun 30, 2020, 04:24 PM IST | Edited by : Ahamad Fuwad
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Amid the crisis in India's aviation sector due to the coronavirus pandemic, Vistara Airlines on Tuesday announced that its CEO Leslie Thng will take a 20% salary cut for July-December 2020.
The airline said it is operating with less than 30% capacity and currently getting back to normalcy in operations and network which may take a couple of months.
"The ongoing pandemic continues to adversely impact our financial performance, as we are operating on a significantly reduced network since 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," a Vistara spokesperson said.
"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 spokesperson said in a statement.
The CEO will not be the only employee taking a pay cut. 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.
"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," the statement said.
