CNN reported that Air New Zealand has frozen the salaries of senior executives, cut out bonus payments and is reviewing “nonessential” activities to cut stuff numbers, as it battles soaring fuel costs and sliding passenger demand for seats. Chief executive Rob Fyfe said in a statement Tuesday pay increase for managers will be achieved only through staff reduction or increase productivity. And senior management will be the first to feel the squeeze with their salaries feozen for a year. Other managers will earn less through the loss of short-term incentive bonuses.

Air New Zealand has 20top executive in New Zealand who earn more than 250,000 New Zealand dollar (US$189,000) a year.

Days ago German industrial conglomerate Siemens says it is cutting 16,750 jobs worldwide.

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Air New Zealand, soaring fuel costs, stuff reduction