Indian budget carrier GoAir is now planning to indefinitely furlough up to 90% of its workforce, Bloomberg reports.
Most of its 5,000 employees have been idle since India went into lockdown.
The nationwide lockdown continues until May 3.
Airlines may be able to restart phased flight operations after then but the civil aviation ministry has asked all airlines not to open reservations until it gives approval.
"The lockdown has been further extended and our fleet continues to be completely grounded. Hence, we are constrained to request you to proceed on leave without pay. We may, however, have to extend the period of LWP for a further term, if so required," the airline said in a note to employees.
The move apparently signals that it believes it will be some time yet before the government will allow commercial flights to resume.
Until then most staff will stay at home without pay.
It will keep a small number of employees on the payroll to keep the business ticking over and to make preparations for a restart of operations.
