GoAir Chairman Nusli Wadia and MD Jeh Wadia told on Monday, low cost private airline GoAir has no cash reserves to pay immediate salary to all its employees, since the company has not yet got no any relief from either the government or the country’s banking system.
The Chairman and the M.D. of GoAir wrote a joint letter to employees that there is ‘no inflow of cash’ because of both domestic and international travel being suspended for over a month now to contain the spread of the pandemic situation of Covid-19. According to them the company has been “left with no choice”, to pay the pendings March salary over March and April. The Indian aviation sector has been harshly hit due to the crisis, forwhich it has led to flights being grounded both all international and domestic travel being stalled during a nationwide lockdown and shutdown which has been extended twice. GoAir has been managing to pay full salaries to 40 percent of 2,500 employees as it said while the remaining employees are getting paid on a deferred basis.
Accoring to the joint letter, it said “With no inflow of cash, which we are now anticipating will continue through the end of May that a period of over 10 weeks, and with no support forthcoming yet from either the government or the banking system, we were left with no alternative but to make the unfortunate and sad decision to pay the March earned salaries over March and April”. The letter to the employees read that – “The limitations on our resources are not of our own making and the sacrifices we are imposing on you are sadly beyond our control. Our CEO has taken a 50 per cent pay cut and voluntarily deferred most of his balance compensation. The senior management, too, has taken substantial pay cuts and have also deferred a portion of the compensation”.