/world business
WELLINGTON, New Zealand (AP) -- Air New Zealand says it has frozen the salaries of senior executives, cut out bonus payments and is reviewing "nonessential" activities to cut staff numbers, as it battles soaring fuel costs and sliding passenger demand for seats.
Chief executive Rob Fyfe said in a statement Thursday pay increases for managers will be achieved only through staff reductions or increased productivity.
Fyfe said he and senior management will be the first to feel the squeeze with their salaries frozen for a year. Other managers will earn less through the loss of short-term incentive bonuses.
Air New Zealand has 20 top executives in New Zealand who earn more than 250,000 New Zealand dollars (US$189,000) a year.
Copyright 2008 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
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