Source: AFP Author: 04/01/2009
Subject Concerned: Aircrew Airlines Human Resource
On April 1, Singapore Airlines (SIA) announced shorter work months for management and ground staff as part of cost-cutting measures to deal with the impact of the global economic crisis.
A company statement said it will also implement a wage freeze for managers and warned it cannot rule out further measures to keep costs down if the worldwide downturn worsens.
Senior management staff will start shorter work months from April 1. The reductions will apply to all other managers and ground employees from May 1, the airline said.
Discussions are under way with pilots, the company added.
"In addition, a wage freeze will be implemented for all employees in the management grades for the coming financial year," SIA said.
"The airline cannot rule out further measures to contain costs if the downturn worsens."
SIA, regarded as a bellwether for the airline industry, has reported a steep drop in passenger and cargo volumes because of the crisis, which has hurt global travel and trade.
It said last month it would receive four Airbus A380 superjumbos as planned this year but could not rule out deferring future deliveries of the world's biggest airliner.
In February it said it will ground 17 passenger aircraft over the financial year from April 2009 to March 2010.
SIA, majority owned by Singapore sovereign wealth fund Temasek Holdings, reported a 42.8 percent fall in net profit in the third quarter to December, to S$337 million (US$221.5 million).