FLYi, parent of cash-strapped airline Independence Air, on Friday said it will cut the pay of its top three executives as part of a series of measures to save USD$2.2 million over the next year.

Chairman and Chief Executive Kerry Skeen will see his salary cut by 15 percent as of April 1. Thomas Moore, president and chief operating officer, and Richard Surratt, chief financial officer, will see their pay cut by 10 percent.

Independence said on Thursday it was under pressure to boost revenues and cut costs to avoid a liquidity crisis.

After the cuts, Skeen's base salary will fall to USD$369,750 a year, Moore's to USD$247,500 and Surratt's to USD$193,500, FLYi said, adding that Surratt had been granted a USD$50,000 cash bonus in 2005 for his efforts in leading its financial restructuring.

Skeen also agreed to defer until May 2006 a company obligation to pay him USD$1.4 million to reimburse for taxes.

The three executives also agreed to cancel out-of-the-money options for 2.3 million shares of common stock.

The combined measures will result in savings of about USD$2.2 million over the period from April 1, 2005, to March 31, 2006, the company said.