GoAir chairman and managing director have said that the airline has no money to pay immediate salaries to all its employees.
They further said that the company is yet to receive any relief from either the government or the country’s banking system and this has deteriorated the situation
GoAir chairman Nusli Wadia and MD Jeh Wadia, in a joint letter to the employees, informed that due to the suspension of operation there is “no inflow of cash”.
“With no inflow of cash, which we are now anticipating will continue through the end of May, a period of over 10 weeks, and with no support forthcoming yet from either the government or 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 joint letter said.
“The limitations on our resources are not of our own making and the sacrifices we are imposing on you are sadly beyond our control,” it added.
GoAir, like many others, has been forced to send people on leave without pay.
“Our CEO has taken a 50 per cent pay cut and voluntarily deferred most of his balance compensation,” the joint letter added.
“The senior management, too, has taken substantial pay cuts and have also deferred a portion of the compensation,” it further said.