Kingfisher cuts trainee pilots146; pay

After much speculation on salary cuts in the airline industry post the Jet Airways lay-off drama, Vijay Mallya-promoted Kingfisher Airlines has confirmed a downward revision in the salary of its trainee pilots...

After much speculation on salary cuts in the airline industry post the Jet Airways lay-off drama, Vijay Mallya-promoted Kingfisher Airlines has confirmed a downward revision in the salary of its trainee pilots citing the ongoing turbulence in the industry and its own losses during the last nine-month period ended March 2008.

While the target of today8217;s salary cuts, according to the airline, is 50 trainee pilots who will continue to be on the payrolls of the company, speculation is rife whether salary cuts would stretch across all the departments. When asked about the cut, a Kingfisher Airlines pilot said that he was aware of the situation, but nobody from the airline8217;s human resources HR department had got in touch with the pilot till then.

8220;With a view to tiding over the ongoing turbulence in the aviation industry and keeping in mind the reduction in capacity deployed, Kingfisher Airlines has effected a downward revision in the emoluments of a small pool of 50 trainee co-pilots. These trainee co-pilots will continue to remain on the payrolls of the company and will continue to enjoy all the benefits and privileges that are available to the employees of the company,8221; said a release.

8220;It seems they are just testing the waters for further revision in salaries across all departments as merely cutting the salaries of 50 trainee pilots does not make sense at all,8221; said a senior industry analyst who did not wish to be named.

The company had posted a net loss of Rs 188 crore during the nine-month period ended March 2008. The financial position has worsened since March following the steep rise in aviation turbine fuel ATFprices 8212; which accounts for nearly 50 per cent of the operating expenses 8212; in the past six months.

Testing the waters?

8226; The Vijay Mallya-promoted airline had posted a net loss of Rs 188 crore during the nine-month period ended March 2008

8226; The financial position has worsened since March following the steep rise in aviation turbine fuel prices in the past six months

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8226; Company may be testing the waters for further revision in salaries across all departments, feel industry analysts