Saudi Arabia eyes tourism growth; to begin issuing tourist visas soon

New Delhi, Mar 19: Hit hard by coronavirus, budget carrier IndiGo today announced that it will cut salaries of senior employees. IndiGo CEO Ronojoy Dutta, who will himself take a 25% cut in salary, said senior vice presidents and above are taking a 20% pay cut while vice presidents and cockpit crew are taking a 15% pay cut.

With precipitous drop in revenues, the very survival of airline industry is now at stake, Dutta said while announcing the pay cut. "We have to pay careful attention to our cash flow so that we do not run out of cash," Dutta said adding that he knew how hard it was for families to take a cut in "take-home pay".

"With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020," the chief executive officer said. Band A and B are the lowest brackets in salary class, where most of the employees are.

IndiGo's flight operations chief Ashim Mitra had written an email to pilots this morning saying that the economic environment has deteriorated significantly and no airline is insulated from this severe downturn.

"It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks," Mitra said.

With countries sealing their borders partially or fully across the world due to the novel coronavirus pandemic, aviation sector has been hit extremely hard as most airlines globally have drastically curtailed their flight operations.

Another budget airline GoAir has already terminated contracts of expat pilots amid curtailed operations due to the coronavirus pandemic.

Citing "unprecedented" decline in air travel, the budget carrier announced it was suspending international operations and offering leave without pay programme to its staff on a rotational basis.

Government-owned Air India may also cut salary of employees by 5% amid its growing financial woes particularly in the wake of the coronavirus pandemic, which has nearly grounded its entire international operations. The reduction will be across the board, according to a PTI report.

The loss-making airline, which is in the process of a second attempt of privatization after failing to get a single buyer nearly two years ago, has already taken some steps such as reduced flying allowances to cabin crew besides withdrawing entertainment allowance to executive pilots, among others.

“Air India is considering a 5 per cent pay cut to its employees as it faces huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations save the US, Canada and a few other markets, to the ground," a source told news agency.

Dubai, Mar 18: Emirates, one of the world's biggest international airlines, has asked pilots to take unpaid leave to help it mitigate the impact of the coronavirus pandemic that has shattered demand for global travel.

"To this end you are strongly encouraged to make use of this opportunity to volunteer for additional paid and unpaid leave," the airline said in an internal email to pilots, seen by Reuters.

Emirates earlier this month asked some staff to take unpaid leave, although at that time it was not available to pilots.

Dubai, Apr 12: Saudi Arabia reported 429 new cases of coronavirus, bringing the total number of infections in the country to 4462, the Ministry of Health announced on Sunday.

The ministry also confirmed 7 deaths bringing the total number of deaths in the kingdom to 59.

According to the ministry of health the number of recoveries are 41 cases, making total of recoveries 761.

Ministry also said that 40,000 have been quarantined since the beginning of the epidemic, and only 7,000 remain in quarantine, including those who recently returned from abroad.

Extension of curfew

Early on Sunday, King Salman approved the extension of curfew until further notice due to current rates of coronavirus spread, the official news agency SPA announced.

Earlier last week, Saudi Arabia imposed a 24-hour curfew and lockdown on the cities of Riyadh, Tabuk, Dammam, Dhahran and Hofuf and throughout the governorates of Jeddah, Taif, Qatif and Khobar.

Authorities had already sealed off the holy cities of Makkah and Medina along with Riyadh and Jeddah, barring people from entering and exiting as well as prohibiting movement between all provinces.

Total lockdown on Medina neighbourhoods

The Ministry of Interior also announced a total lockdown on five neighbourhoods in Medina on thursday until further notice. The neighborhoods include Al Sherbat; Bani Dhafar; Qurban, Al Jumuah; and parts of Al Iskan district and Bani Khudrah. No one is allowed to enter or exit these areas.

An official source from the ministry highlighted that the Ministry of Labor and Social Development will provide residents of these neighbourhoods with food baskets and will follow up on their needs while the ministry of health will provide them with necessary medications.

Saudi Arabia, which has reported the highest number of infections in the Gulf, is making every possible effort to limit the spread of the disease at home.