More cuts: Now its China Southern Air's turn

According to the South China Morning Post, a daily newspaper published in Hong Kong, China Southern Airlines plans to lower operating costs by RMB1.3 billion ($190.9 million) this year amid rising fuel prices and slowing demand.

The plans include a 10% pay cut for all of the carrier’s management staff effective July. The payroll of the Guangzhou-based carrier will be cut by up to RMB100 million.

Several hundred executives including chairman Liu Shaoyong will be affected.

The airline said fuel prices and other factors were set to boost its 2008 operating expenditure by RMB1.86 billion

It said it would achieve the savings by cutting RMB800 million in planned investment on infrastructure and RMB500 million in other costs.
Sources: Quamnet and Reuters.