New Delhi,  To mitigate the economic fallout of Covid-19, full service carrier Vistara on Tuesday instituted a compulsory "no-pay" leave for a section of its employees and reduced the monthly base flying allowance for pilots during May and June.

These leaves without pay range from one to four days, depending on employment grades. Accordingly, seniormost employees will have to take four days of compulsory no-pay leave during May and June.

"Vistara is making every effort to save jobs of more than 4,000 of its people while conserving cash and pursuing to reduce operational expenditures, which includes staff costs," a Vistara spokesperson was quoted as saying in a statement.

"For the months of May and June 2020, Vistara's senior staff will take compulsory no-pay leave of one to four days in each of the two months, depending on employment grades. The monthly base flying allowance for pilots has been reduced to 20 hours for these two months, and adjustments will be made to their monthly remunerations accordingly."

According to the airline, this decision does not impact 70 per cent of Vistara's staff including cabin crew, other frontline staff and junior corporate office employees.

At present, domestic and international passenger flight operations have been banned. Airline sector is the worst impacted due to the restrictions imposed to curb the spread of Covid-19 outbreak.