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Go Air will defer, partly pay salary to staff

Go Air, low cost airline  informed ,it will defer and part-pay salaries to a majority of its employees because of drying  revenues due to the lockdown , according to various media reports.

In a joint letter chairman Nusli Wadia and managing director Jeh Wadia said the management of GoAir was forced to take this unfortunate decision as it has received no support from the government or banks during the lockdown which saw operations being grounded.

 

"Despite the lack of government support, GoAir released full salaries to about 2,500 employees equivalent to 40% of our workforce, with the remaining employees getting paid on a graded and deferred basis," the  chairman and MD said in the letter.

 

In the letter, it was also mentioned that GoAir’s board members, chairman and managing director are not drawing any remuneration.

 

“Our CEO has taken a 50 per cent pay cut and voluntarily deferred most of his balance compensation. The senior management, too, has taken substantial pay cuts and have also deferred a portion of the compensation.”

 

Following the near-grounding of operations, airlines like Vistara, AirAsia India, Air India, SpiceJet, apart from GoAir have initiated measures like salary cuts and leave without pay for its staff to contain escalating costs.

 

Deferred payment of salaries and sending portion of staff on leave without pay, was the last resort used by the management as the airline was losing huge amount of money, on a daily basis, on fixed costs without any revenue, according to sources.

 

GoAir, since March, has laid off its expat pilots, introduced leave without pay for its employees.