Kingfisher Airlines has lined up a host of cost-cutting measures, a majority of which involves drastic salary cuts.
The most affected will be the new lot of trainee co-pilots who not only have to go back to their stipend pay, but also be prepared for an uncertain future.
A cost modelling study has shown that the airline has surplus pilots, athough the exact figure isn’t yet known. Unlike in the case of Jet Airways, the surplus pilots also include senior commanders on wide-bodied aircraft.
“About 70 trainee pilots’ monthly salaries stand to come down from Rs 1.95 lakh (newly endorsed ATR/A320 pilots) and Rs 90,000 (trainees on probation) to a stipend of Rs 20,000 per month,’’ said an airline official who did not wish to be named.
The cost-cutting will not be limited to the junior pilots and is slated to go all the way up to the wide-bodied A340 pilots as well.
“About 14 commanders and 30 first officers who have been trained and endorsed on A340 aicraft will be losing Rs 1.20 lakh each from their monthly salaries as they will be moved down to the singleaisle 320 aircraft. Had they been allowed to continue on the A340, they would have drawn Rs 60,000 more per month after their endorsement and another Rs 60,000 after completing 500 hours of flying on the A340,’’ the official added.
The airline, which was to launch its international operations in a big way this year, has scaled down its plans, leading to a surplus of senior pilots.
While no official letters have been sent out, officials say the final equations in the cost-cutting exercise will emerge soon. Although the Kingfisher spokesperson did not comment on the specifics of the exercise, a statement issued by the airline on Friday confirmed the salary cuts.
19/10/08 Manju V/Economic Times
Monday, October 20, 2008