The airlines have asked the government to help them pay the salaries of their employees, as an outbreak of the coronavirus (KOVID-19) has forced the authorities to suspend air traffic until 31 December 2009. Mars.
Sources aware of these developments have reported that the Chief Executive Officers of the airlines have asked the government to pay 50% of employees’ salaries within three months.
This requirement is based on a government directive which states that companies cannot lay off employees even if their jobs are terminated as a result of a pandemic.
Faced with these difficult situations, all workers in public or private institutions are encouraged to increase their coordination without interrupting their work, in particular temporary or contract workers, or to reduce their pay, according to the report published by the Ministry of Labour and Employment.
The airline executives say that it is difficult to pay the employees because they already work with limited flexibility and depend mainly on the cash flow generated by early ticket sales.
The airlines claim that even after the resumption of air traffic on the 15th. In April and even beyond, consumer demand will be very weak, forcing them to land many planes. The period of pain is just beginning. It’s not like we’ll see full flights after the ban is lifted. It will take at least six months to regain customer confidence. There is an urgent need for government intervention, according to the Executive Director.
The government estimates that Indian airlines are likely to operate only 30 percent of their fleet in the next two months.
Air traffic has been suspended under government control. Our cash flow is zero, but the fixed costs remain the same. Unlike other companies, we still have to pay rent and salary if the planes don’t fly. The government must bear part of this burden if the economy is to survive, said the head of a private airline.
With the exception of IndiGo, the other Indian airlines do not have the liquidity to survive the current crisis. IndiGo CEO Rono Dutta assured the employees Tuesday that the airline would pay their wages despite the work stoppage. It is important to remember that during this temporary suspension we will use our cash reserves to continue to pay salaries and benefits, Mr Dutta wrote.
Government officials confirmed that such a request had been made, but explained that it was difficult to deal with all employees. Instead, a package can be developed to pay employees’ salaries at a lower level.
Most airline employees, such as guards, shippers, drivers, ground staff, work on a contract basis and are afraid that they will soon lose their jobs.
Employees of several airlines who deal with corporate standards have expressed their concerns. Companies cannot dismiss permanent employees from their salaries, as the Prime Minister himself has ordered, but for contract workers like us, the future is uncertain, according to Manoi Saikia, who works as a check-in agent for a private airline flight at Agartala airport.
Since the first week of March, GoAir has already started to cancel the contracts of foreign pilots. Delhi-based SpiceJet has decided to shorten the registration period for some 20 pilots who have recently stopped producing their documents.