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INDIGO – India’s Largest Airline lays off 10% employees

Indigo AIrlines Cost Management Technique - reduce 10% workforce ?

We're confident of operating at 50% capacity: IndiGo CEO Ronojoy ...

India’s largest airlines joins the aviation industry pandemic by laying off 10% staff. 

It is of no secret that the past 4 months have been the toughest and the most cruel on every Industry across the Globe but the hit on Aviation Industry has been the hardest described.
Imagine an Airline having approx 49% of marketshare in India decides to implement Cost Cutting Measures by reducing the workforce. 

Hello – Good Morning Staff, YOU ARE NO LONGER REQUIRED. By The Way, You are welcome.

Jokes Apart but it is a fact that Aviation Industry is just walking at the edge with the entire business circle at halt. But speaking seriously, it terrifies me that an airline which has registered profits in the past years is not capable enough to handle the workforce for 6 months.   

The present pandemic has impacted many industries all over the world, amongst which aviation has been one of many sectors that has been impacted the toughest. Even now, IndiGo is flying solely a small proportion of its full fleet of 250 airplanes.

But before you check what INDIGO has to say in their press release, check this out.

Facts and Figures – as per INDIGO Airlines official website

  • 10 consecutive years of Profitable operations
  • Market share of 48.9% as of March, 2020
  • Fleet of 269 aircraft including 104 new generation A320 NEOs, 123 A320 CEOs, 25 ATRs and 17 A321 NEO.
  • Recognized as ‘Great Place to Work for in India’ for 8 years in a row (2008- 2015)
  • Named as Aon’s Best Employer for the year 2016 and 2017

Lets just understand in simple language what Indigo has to say about it during their press release and through their CEO – Mr RONOJOY DUTTA :
Proper initially of this disaster, IndiGo understood the gravity of the scenario. For us, it was vital to minimise the affect of the pandemic on our staff and in reality IndiGo was one of many few airways globally which paid full salaries for the month of March and April 2020, regardless of the disruption in enterprise. Subsequently, we did should undertake quite a few measures similar to Pay Cuts, Depart With out Pay and numerous different prices; however sadly, these value financial savings are clearly not sufficient to offset the decline in revenues. And from the place issues stand presently, it’s not possible for our firm to fly via this financial storm with out making some sacrifices, with a purpose to maintain our enterprise operations. Due to this fact, after fastidiously assessing and reviewing all doable eventualities, it’s clear that we might want to bid a painful adieu to 10 per cent of our workforce. It’s for the primary time within the historical past of
IndiGo that now we have undertaken such a painful measure. That is certainly a really unlucky flip of occasions from the optimistic progress trajectory we had carved out for ourselves simply six months in the past; however this pandemic has compelled us to re-evaluate our greatest laid plans.

To assist the impacted staff’ tide over the uncertainties emanating from this resolution, IndiGo has created a ‘6E Care bundle’, the main points of that are listed under.

Monetary assist
 Discover pay in lieu: Impacted staff might be paid discover pay in lieu of serving discover
relevant to them. This might be calculated on the gross wage, foundation the worker’s discover interval.
 Severance Cost: Along with discover pay, impacted staff might be paid a severance pay
which might be calculated as one month of CTC for each accomplished yr of service, topic to a most of 12 months. This may result in increased money in hand compared to calculations on Gross wage
 At a minimal, an impacted worker will obtain not less than 3-months’ gross wage, together with each the above funds. These with increased tenure with the corporate will obtain extra as per the above calculation technique.
 Annual Bonus / Efficiency Linked Incentive (PLI) (for Non- crew), FY 2019 – 20 : Cost of
bonus / PLI shall be made when the Firm decides to make this pay-out to the remainder of the staff on this monetary yr, even after the impacted worker’s exit.
 Longevity Bonus (Crew): For yr 2020, longevity bonus shall be paid together with Full and Closing to eligible crew members. This bonus is just relevant for cabin crews.
 Depart Encashment, if any
 Gratuity, as relevant per Cost of Gratuity act

Medical Insurance coverage
Medical Insurance coverage protection for impacted staff might be prolonged till December 2020.

There shall even be a provision to proceed with the coverage submit December 2020 as per relevant market charges. For these staff who had coated their mother and father through the coverage, such insurance coverage will even be prolonged till December 2020. As is presently present, cost might be borne by the workers.

Skilled Help
We recognize how necessary continuity of profession is to our individuals and we are going to do our greatest to help. Following are the main points for Skilled Help.
 6E Profession transition assist: Along with the monetary bundle outlined above, we will even present the impacted staff, an “Outplacement Allowance” to assist them search
skilled assist to discover profession alternatives, exterior IndiGo.
 6E Expertise Listing: We worth the abilities and expertise they create to the desk. The listing will assist us attain out to them, earlier than anyone else, after we see our operations revert to regular. Evidently, that it’s our dedication to first rent such staff again earlier than opening such positions to different candidates.
 Advice letter: Every worker who has been impacted will obtain a customized
suggestion letter to vouch for his or her skilled credentials

Emotional Help:
We perceive that these try occasions that may severely take a look at even the most effective amongst us. To assist the impacted staff tide over these emotional occasions, we can have the following Help Program.
 1-0-1 Help Program – Three months from the final date of employment with us. Particulars of this program might be shared with the impacted staff instantly.

One-way Air ticket
 Ought to the impacted staff have to journey again to their hometown or base location, we will help them with a a technique confirmed air ticket.

This has been one of many hardest selections that now we have needed to take and we’re guaranteeing that the transition course of for the impacted staff is carried out seamlessly, professionally; and with the utmost respect and compassion. We wish to categorical our heartfelt gratitude and honest thanks to all our individuals who have stood by us via thick and skinny; and we’re assured that each individually in addition to collectively, we are going to emerge stronger out of this disaster.

 Time and lockdown has taken a toll on everyone and the affects are getting more severe month by month. Indigo had made sure to support the laid off staff monetarily, announcing some major relief for atleast 3 months and assuring them to re-appoint once situation normalises.


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