Indigo to remove LWP norms for employees starting 1st January 2021

Indigo to remove LWP norms for employees starting 1st January 2021
  • The move comes on heels of Indigo’s fulfillment of 70% pre-covid capacity
  • The airline is currently operating 1,000 daily domestic as well as international flights

Employees of one of India’s largest airline companies- Indigo, are set to embrace the new year on positive note, with the company CEO- Ronojoy Dutta- announcing slashing off Leave Without Pay (LWP) across all departments, with effect from 1st January 2021.

Ever since the COVID-19 pandemic dented the Indian aviation industry, the airline company was in a fit due to stringent lockdown norms and regulations amended by the country.

As per reliable reports, the move follows government’s decision to allow airlines to utilize 80% of their pre-Covid capacity as the number of passengers taking flights has dramatically increased post upliftment of the lockdown terms with a month-on-month growth of 33% in the previous month.

In fact, IndiGo had already reduced the LWP for its employees from 10 days a month to 3-days a month in November. Previously, the company was forced to lay off about 10% of its staff to reduce the loss it had been facing.

It has been reported that IndiGo has already reached 70% of its pre-Covid capacity and is currently operating 1,000 daily domestic and international flights. Moreover, India had resumed its domestic passenger flights on 25th of May after a gap of two months in wake of dreaded COVID-19 pandemic.

For the records, at the time of resumption, the central government had allowed airlines to operate not more than 33% of their pre-Covid domestic flights, leading to the LWP terms. Company officials state that IndiGo is set to call back its employees as soon as capacity utilization improves over the due course of time.

However, CFO Aditya Pande has offered a statement citing that the airline would keep salary costs 30% lower than its pre-Covid levels, meaning pay cuts for the staff would continue for some time.

Source Credit: https://www.business-standard.com/article/companies/indigo-scraps-leave-without-pay-for-staff-says-70-pre-covid-level-reached-120120301335_1.html