• Thursday, March 28, 2024

Business

Indian budget airline IndiGo lays off 10 per cent of staff over pandemic

People lineup at a IndiGo Airlines ticket counter at the Sardar Vallabhbhai Patel Airport in Ahmedabad on March 23, 2020. – India will ground all domestic passenger flights from March 25 to combat the spread of the coronavirus, the government said, as more states ordered lockdowns in the world’s second most populous nation. (Photo by Sam PANTHAKY / AFP) (Photo by SAM PANTHAKY/AFP via Getty Images)

By: Sarwar Alam

India’s largest budget airline IndiGo said on Monday (20) it was laying off 10 percent of its workforce in the wake of the financial fallout from the coronavirus pandemic.

IndiGo rose quickly to capture nearly half the domestic market in recent years, reaping big profits on the back of a booming local aviation sector.

But the carrier said earlier that cost-cutting measures including salary cuts and unpaid leave had not offset the severe economic impact of the global health crisis, which has shuttered airports and reduced air travel to a fraction of its peak.

“From where things stand currently, it is impossible for our company to fly through this economic storm without making some sacrifices,” chief executive Ronojoy Dutta said in a statement.

“After carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10 percent of our workforce.”

IndiGo employs around 24,000 people, according to local media.

Carriers around the world have been badly hit by the pandemic, with many filing for bankruptcy, implementing hefty cuts or asking governments for huge public rescue plans.

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