Parata Airlines executives decided to voluntarily return this month's pay. For rank-and-file employees, a four-day workweek will be implemented only for those who opt in. The decision comes as weak results have persisted due to factors such as high oil prices stemming from the U.S.-Iran war.
According to the airline industry on the 25th, Parata Airlines decided to have executives return their wages starting this month. The CEO will return 100%, and executives will voluntarily return 30%. The amount will be deducted from the take-home pay on the June pay statement by the amount returned, effectively reducing the actual payment.
For general employees, Parata Airlines chose a four-day workweek instead of wage returns. The plan is to implement it only for those who wish to participate, and participating employees' wages are expected to decrease by about 20%. It has not yet been decided whether this emergency management will continue next month.
It stems from an intent to normalize management and overcome a liquidity crisis. Parata Airlines plans to pay back in full, at a later date when the company normalizes, the wages returned by executives and employees.
Since the Middle East crisis, domestic low-cost carriers (LCCs) have entered emergency management, reducing expense through unpaid leave, using up annual leave, and delaying incentive payments. Parata Airlines is the first LCC to directly cut employees' wages.