Leslie Thng, Vistara CEO on Tuesday, announced that senior employees of the firm will have to go on compulsory leave without pay for up to 4 days per month in the month of May and June, in order to conserve the airline’s cash flow disturbances caused due to stringent lockdowns across the world.
Earlier, Vistara had the same setup for the senior employees to go on compulsory leave without pay for up to six days in the month of April.
This no pay leave will affect around 1,200 employees in senior grades. While the remaining 2,800 employees of Vistara like members of cabin crew and ground handling staff will be unaffected.
“We will continue with the difficult decision to reduce staff costs to preserve jobs,” Thng said in the mail sent to the employees.
For the month of May and June 2020, Vistara will continue with compulsory no-pay leave (CNPL) for all staff, except for pilots and staff in Level 1A and 1B. While Staff in Level 4 and 5 to go on 4 days CNPL per month, Staff in Level 2 and 3 to go on 3 days CNPL per month and Staff in Level 1C to go on 1 day CNPL per month.
Later during the day, Vistara spokesperson said: “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”.
However, the entire aviation industry is hard-hit by the coronavirus, and Vistara is not alone to take such economical steps, other airlines have taken similar steps. GoAir has sent the majority of its employees on leave without pay, Air India has cut the salaries of employees by 10 percent, SpiceJet has cut the salaries of all employees by 10-30 percent, and AirAsia India has cut the salaries of its senior employees by up to 20 percent.