LearX
23rd Jul 2003, 21:17
Singapore Airlines Ltd. Monday confirmed it was laying off pilots in a move to trim staff-related costs as it battles a slow recovery in air travel after the SARS outbreak.
The airline said it was retrenching five pilots and terminating the contracts of another 21 pilots, six of whom are based overseas. Additionally, the airline is retrenching 156 cabin crew.
The pilots losing their jobs represent around 1.5% of the airline's technical crew strength while the 156 flight stewards and stewardesses represent 2.4% of cabin crew strength.
"Although compulsory no-pay leave and wage cuts have helped to reduce staff costs, these measures alone could not address the prevailing surplus of crew. It was therefore necessary to reduce the numbers through retrenchment and termination of contracts," SIA explained in a statement.
The affected staff are being informed of the layoffs from Monday.
The brief statement from SIA didn't provide details about compensation for the affected staff.
"The (pilots) association, at this juncture, isn't aware of the basis or details of the retrenchment exercise," said Suthar Sanan, honorary secretary of the Air Line Pilots Association Singapore, adding he was "saddened" to learn about the layoffs.
"Management is in the process of calling the individuals affected and as soon as that is completed, the association will be informed," he said.
SIA has about 1,900 pilots and 6,600 cabin crew.
The airline, which has been losing S$6 million daily since April and is expecting its first ever quarterly loss for the three months ended June, retrenched 414 ground staff in June, while another 145 employees opted for early retirement.
Its engineering and catering and ground handling staff have already accepted pay cuts of 7.5% from July while the pilots took 11%-16.5% pay cuts after a long drawn out settlement.
The top management of the airline had also previously accepted salary cuts of 22.5%-27.5%, as the airline attempted to trim its S$2.25 billion annual wage bill.
However, the recovery in air travel has been slow.
The airline last week reported it filled 70.3% of its overall passenger and cargo capacity in June, down from 74.1% a year ago but up from the 63.6% it filled in May.
For April and May, SIA's losses totaled S$370 million, and analysts say the airline needed June load factors of about 90% to break-even in the quarter.
The airline said it was retrenching five pilots and terminating the contracts of another 21 pilots, six of whom are based overseas. Additionally, the airline is retrenching 156 cabin crew.
The pilots losing their jobs represent around 1.5% of the airline's technical crew strength while the 156 flight stewards and stewardesses represent 2.4% of cabin crew strength.
"Although compulsory no-pay leave and wage cuts have helped to reduce staff costs, these measures alone could not address the prevailing surplus of crew. It was therefore necessary to reduce the numbers through retrenchment and termination of contracts," SIA explained in a statement.
The affected staff are being informed of the layoffs from Monday.
The brief statement from SIA didn't provide details about compensation for the affected staff.
"The (pilots) association, at this juncture, isn't aware of the basis or details of the retrenchment exercise," said Suthar Sanan, honorary secretary of the Air Line Pilots Association Singapore, adding he was "saddened" to learn about the layoffs.
"Management is in the process of calling the individuals affected and as soon as that is completed, the association will be informed," he said.
SIA has about 1,900 pilots and 6,600 cabin crew.
The airline, which has been losing S$6 million daily since April and is expecting its first ever quarterly loss for the three months ended June, retrenched 414 ground staff in June, while another 145 employees opted for early retirement.
Its engineering and catering and ground handling staff have already accepted pay cuts of 7.5% from July while the pilots took 11%-16.5% pay cuts after a long drawn out settlement.
The top management of the airline had also previously accepted salary cuts of 22.5%-27.5%, as the airline attempted to trim its S$2.25 billion annual wage bill.
However, the recovery in air travel has been slow.
The airline last week reported it filled 70.3% of its overall passenger and cargo capacity in June, down from 74.1% a year ago but up from the 63.6% it filled in May.
For April and May, SIA's losses totaled S$370 million, and analysts say the airline needed June load factors of about 90% to break-even in the quarter.