IndiGo’s father or mother firm InterGlobe Aviation on Monday stated it should elevate as much as Rs 4,000 crore by way of a professional institutional placement (QIP). The aviation sector has been hit laborious resulting from journey restrictions amid the coronavirus pandemic. Consequently, IndiGo has reduce salaries of senior workers and fired 10 per cent of its workforce throughout the previous few weeks.
InterGlobe Aviation knowledgeable the BSE that its board of administrators has authorised “the elevating of funds for an mixture quantity of not exceeding Rs 4,000 crores by way of a difficulty of fairness shares by the use of certified institutional placement.”
The corporate had on July 29 introduced a large lack of Rs 2,844 crore for the quarter ended June 30. Within the corresponding interval a yr in the past, it had posted a web revenue of Rs 1,203 crore.
IndiGo on July 27 stated it’s implementing “deeper” pay cuts of as much as 35 per cent for its senior workers with a view to cut back its money outflow amid the coronavirus pandemic.
From Could onwards, IndiGo had carried out pay cuts of as much as 25 per cent for its senior workers.
The deeper pay cuts got here after the airline’s announcement on July 20 that it might lay off 10 per cent of its workforce.
Scheduled worldwide flights have been suspended in India since March 23 as a result of coronavirus-triggered lockdown.
Nonetheless, India has not too long ago signed bilateral ‘air bubble’ preparations with international locations just like the US, Germany and France that permits airways of every nation to function worldwide flights underneath sure restrictions.
Home flights resumed in India after a spot of two months on Could 25.
Occupancy charge in Indian home flights has been round simply 50-60 per cent since Could 25.
All airways in India have taken cost-cutting measures resembling pay cuts, depart with out pay and firings of workers with a view to preserve money within the aftermath of the COVID-19 disaster.