GoAir to furlough 90% of staff after India extends coronavirus lockdown


APRIL 19, 2020

The logo of GoAir airline is pictured on an A320neo aircraft at the builder’s headquarters of Airbus in Colomiers near Toulouse

NEW DELHI – Indian budget airline GoAir has asked as many as 90% of its 5,500 employees to go on indefinite leave without pay as the Indian government’s coronavirus flight restrictions dry up cash flow, Bloomberg News reported on Sunday.

The airline will keep paying a small number of employees on payroll to restart operations when the government allows flights, the report https://bloom.bg/2VjpsnV said, citing people with knowledge of the matter.

India’s civil aviation minister Hardeep Singh Puri said in a tweet https://bit.ly/2zefUCf late on Saturday that the government is yet to take a decision on domestic and international flights.

Puri said “airlines are advised to open their bookings only after a decision in this regard has been taken by the Government.”

Indian Prime Minister Narendra Modi announced a 21-day national lockdown in late March to contain the spread of the virus outbreak. The lockdown has been extended until May 3 at least.

GoAir is checking with the government if the airline can continue sale of tickets for travel after the national lockdown ends on May 3, the report added.

Courtesy/Source: Reuters