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SpiceJet resorts to sharp salary cuts

The airline has assured that there will be no job losses
The advisory comes a day after a SpiceJet flight with 160 passengers on board had on Tuesday veered off the centre line of Calcutta airport’s main runway and smashed four runway edge lights before the pilot could steer it back to path amidst heavy rain and crosswind.

Our Special Correspondent   |   New Delhi   |   Published 31.03.20, 07:26 PM

Budget carrier SpiceJet employees were in for a rude shock when they received their salaries for the month of March — the airlines had not only cut the wages for the last week of the month, which was the mandatory lockdown period imposed by the government, but had gone a step ahead with a salary cut of up 30 per cent for its employees as the aviation sector is in turmoil because of the coronavirus pandemic.

“The 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) has opted for the highest cut of 30 per cent in compensation,” the airline said in an e-mail communication to the staff on Tuesday.


The airline, however, has assured that there will be no job losses.

However, employees who have been actively working such as cargo, ground staff and crew who have flown during this time will not be affected by the ‘leave without pay’ and their salaries for this period will be reimbursed.

“Unfortunately, because of the lockdown, we are also forced to announced ‘leave without pay’ for employees during March 25-31, 2020 — the period of lockdown when all passenger flights were suspended,” said a mail sent by the airline.

“We have opted for a pay cut and leave-without-pay to ensure that you do not lose your employment,” said the airline.

The airline, like many carriers across the world, had earlier announced salary reductions to cope with the financial losses brought on by flight cancellations and schedule revisions. Other budget carriers IndiGo and GoAir had also announced similar moves.

“Unfortunately SpiceJet is not too immune to the situation which has unquestionably affected the airlines in the most severe form across the globe,” the letter said. 

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