India's Jet Airways has cut top management salaries by 25% and is asking all other employees earning more than Rs75,000 ($1,510) per month to accept unspecified wage cuts over the next year.
The carrier, which has already suspended expansion plans to help reduce losses, says in a statement that the new cuts are being made "in a bid to overcome the challenges faced by all businesses and all airlines in particular due to the current economic slowdown worldwide".
It says its "top management team" has from this month taken 25% cuts in salary while all other employees making more than Rs75,000 per month "have been requested for a graduated wage cut over the next 12 months".
Jet says that for pilots this will be in the form of a combination of reduced wages and reduced allowances "which will bring the contribution of pilots in line with the other employees of the company".
India's airlines are all suffering financially as demand has fallen after fares were increased to help reduce losses. Jet has already shelved further international expansion plans, cut several domestic and international routes, deferred delivery of new aircraft and implemented many other cost-saving initiatives.
In October it announced it was laying off 1,900 employees but later said it had scrapped the plan following public criticism from politicians.