Despite Rs 1800 Cr Loss, Tata-Owned Vistara Won't Fire Any Staff; Salaries Will Be Cut
Vistara Airlines, which is 51% owned by Tata Group, has refused to fire any employees, even as the company suffered a massive Rs 1800 loss in FY2020.
However, company has informed that salaries can be revised in the coming days.
Vistara Airlines: We Won't Fire Any Employee
During an interaction with PTI, Vistara's Chief Executive Officer Leslie Thng has declared that no employee from their airlines will be fired.
There are more than 4000 employees in Vistara, and in the fiscal year 2020, they have already encountered Rs 1814 crore loss.
Despite the loss, and a massive slowdown in the aviation sector, Vistara will not fire any employee from their workforce of 4000 employees.
He said, "There have been no job cuts at Vistara, and therefore, the staff strength remains the same as earlier - nearly 4,000 employees,"
But Salaries Will Be Revised
However, in order to maintain operations and to sustain the company, there will be salary revisions across the company.
Salaries have already been revised, and a review will be done in the month of January, 2021.
He said, "With the intent of protecting all jobs at Vistara, we have had to make the difficult decision of reducing some staff costs by implementing salary cuts. This will continue to be in effect until December 2020 and will be reviewed in January 2021,"
Vistara was launched in India in 2015, and is a joint venture between Tata Sons and Singapore Airlines.
Speculations are rife that Tata Group can bid for Air India, as part of a buyout plan, and can operate India's national carrier.
Comparably, Indigo has fired upto 10% of the workforce, and reduce upto 15% salaries across all the divisions.
SpiceJet too hasn't fired any employee, but reduced their salaries by upto 10-15%.
We will keep you updated, as more details come in.