In an attempt to lower down the operational costs, the Indian airlines is planning to cut down the salaries of the staff by 10% rather than resorting for large scale retrenchment. The decision is said to be taken under the pressure of political parties that see taking away of the jobs from the staff as not as a desirable measure to bring down one’s costs.

The Salary which accounts for about 15% of total operating costs of an Indian airline will be reduced and the contract with some of the foreign pilots and engineers will not be renewed. Same measure for at least a year has also been taken by the Jet Airways (India) Ltd and Kingfisher Airlines Ltd who grouped into an operational alliance last week.

According to a Jet airways company executive. “While Jet’s top brass including senior management and vice presidents will take a pay cut or deferrment of pay for a year, the other staff may have to lose up to 15% of their salary for a year.” The nation’s largest private airline will go for a revision in salaries this week.

Government owned, National Aviation Co. of India Ltd or Nacil which runs Air India, is also likely to go under salary revision. But the airlines will have this only as their “last option” and they are presently keen on reducing cost on outsourcing, eliminating temporary posting, cutting perks and rationalizing hotel stays by the crew. The State run airline is also proposing for a voluntary leave-without-pay scheme for its 15,000 employees for between two and five years.

While a Kingfisher executive said that they will look for revision into salaries, increment and recruitment freeze. On the other hand Spice Jet Ltd. has taken a decision as to non inclusion of fresh cadet pilots from now on.