India's Jet Airways cutting junior pilot pay to trim costs: sources

Jet Airways plans to slash pay of dozens of its junior pilots by as much as 50 percent in a cost-cutting move that could impact up to 400 pilots, according to two sources and letters seen by Reuters. The airline, in letters sent to pilots earlier this month, has proposed they either take 30-50% salary and stipend cuts, or quit, saying it was forced to take such steps as it was "intensely focused on fleet and network rationalisation". The measures are to be implemented from Aug. 1. "Certain developments in the market, including that of the Gulf region, as well as our continued efforts to enhance internal efficiencies, has resulted in the review of our network, fleet and crew utilisation," a Jet spokesman said. The spokesman said it has made some interim changes to its crew work patterns which will be reviewed in future, in line with network growth. Jet Airways has struggled to keep a tight lid on costs in one of the world's fastest-growing aviation markets where competition from low-cost carriers such as InterGlobe Aviation's IndiGo and SpiceJet is on the rise and is putting it under pressure. While India's domestic passenger traffic rose 22% in the fiscal year ended March 31, Jet Airways saw only 5% growth and its market share fell to 18% at the end of June from about 23% two years ago, industry data showed.<br/>