Cost Cutting -Vistara Airline
Vistara CEO Leslie Thng on Friday announced senior employees will be going on compulsory leave without pay of up to three days as a measure to further reduce the airline’s cost amid the coronavirus lockdown.
The compulsory no pay leave will affect around 1,200 employees in senior grades. The remaining 2,800 employees of the airline such as members of cabin crews and ground handling services will be unaffected.
The CNPL stretches from the CEO all the way down to managers. The top down approach means that CXOs, senior vice presidents and vice presidents will take three day leaves, while the ones lower down take 1-2 days. Most of cabin crew, security and ground staff will be exempted.
Vistara Airlines
“I am aware that the above measures have financial impact on you, but I urge you to understand the unprecedented situation that we are going through which are impacting our business and cash flow,” Thng said in his communication.
“Our main priority is to preserve job and maintain employment for everyone within the Vistara family,” he added.
Vistara’s parent Singapore Airlines has already implemented pay cuts. Its other main shareholder is diversified conglomerate Tata Sons.
In India, both IndiGo and GoAir have implemented salary cuts across staff. IndiGo’s CEO Rono Dutta has taken a 25% cut while GoAir’s Vinay Dube has foresaken half of his salary.
Summary
In line with other airlines, Vistara has also announced cost cutting measures. As per this, compulsory 3 day leave without pay will be given to senior management of around 1200 people.
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