The move comes a week after ordinary staff were told the payment of their salaries would be delayed, prompting a strike threat by 20,000 employees, more than two-thirds of Air India's workforce.

'Executives in the level of general managers and above should voluntarily forgo salary... payable in the month of July 2009,' said Air India chairman Arvind Jadhav.

A combination of high fuel prices, fewer passengers and the global financial meltdown have left the airline with an estimated US$800 million (S$1.16 billion) in losses for the past year and debt of four billion dollars, according to the Centre for Asia Pacific Aviation.

The flagship carrier is expected to follow the example of privately-held Jet Airways and Kingfisher Airlines by increasing fares in line with global oil prices, and has reportedly asked the government for a bailout package. -- AFP