Airlines looking at taking steps for cost-cutting
To counter the effect of global economic downturn the aviation industry is also taking steps for internal cost-cutting. Over 2000 employees of Singapore Airlines have agreed upon taking a voluntary unpaid leave. Singapore Airlines had implemented a 65% cut in one day’s payout of their monthly basic salary for its employees. The top management and the board of directors have volunteered to have their fees reduced by 20%. Air India, who have already notified the employees about the delay in salary are asking the senior management to voluntarily relinquish their remunerations. Air India aims to to reduce the wage cost by approximately Rs. 500 Crore by these types of innitiatives. Similar efforts are done by British Airways which has helped them to save $46million of their annual cost.