India's largest private airline, Jet Airways is thinking to reduce salaries and perks of its top management in line with its cost cutting measures. Earlier, few days before Diwali, it had decided to lay-off staff, following international credit crisis and loss booked by the airline due to high fuel costs and lower sales.

However, the company had to roll back its decision, following pressure from the government and politicians, who came for help of sacked employees.

The Chairman of Jet Airways, Naresh Goyal, held a meeting with its employees at Hotel Renaissance, Powai, on Sunday night and apprised them regarding the circumstances that forced the company to take such hard decisions. He separately discussed other matters with executives, pilots and aircraft maintenance engineers in a five-hour-long meeting.

The company may reduce salary of its top management by 25 per cent to control costs. It would affect the pilots and engineers earning more than Rs 5 lakh a month, by 10% pay cut. Jet would also not pay allowances to trainee pilots. The company is paying a monthly salary of Rs 5 lakh plus accommodation allowance of Rs 2 lakh to foreign pilots where as Indian pilots are getting only Rs 3.6 lakh a month. The staff earning less than Rs 5 lakh salary will face 5% salary cut. The company is expected to save Rs 350 crore every month following implementation of fresh pay structure.