Salary Cuts Ahead At Airlines
Many leading airlines are considering salary cuts of their employees to reduce operating cost. Earlier, they want to start a retrenchment drive to deal with the crisis in the aviation sector. But they seem to drop idea after stiff opposition from the political class of the country. Jet Airways has already taken back its sacked staff.
About 10 per cent salary cut is possible from the existing salary of the employees. Salary contributes about 15 per cent in the total operating cost of any domestic airline. Airlines are also considering with co-pilots to reduce their salaries. These would not renew contracts with some foreign pilots and engineers following their cost saving drive.
The largest private air line of India, Jet Airways is likely to revise salary next week. Salary cut would be applicable to all bottoms to top hierarchy of employees. Jet has already entered in a partnership with Kingfisher airline to reduce operating cost.
Air India is also likely to revise salary but it would also consider other options to save the interests of its staff. It would reduce cost by outsourcing, eliminating temporary posts and by cutting other incentives.