SQ pilots under political pressure (merged)
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Looks like Alpa-S is being lined up for more flak in light of not rolling over and agreeing to everything LKY has previously “suggested”.
Interesting to see if the ST invites Alpa-S to comment/rebut (don’t hold your collective breath!)
Straits Times, 16 July 2004
Why SIA's seniority-based wage system must go
SIA's wage structure should be such that it can offer competitive pricing and reward employees fairly, said labour chief Lim Boon Heng, addressing SIA Staff Union delegates on Wednesday. The following is an excerpt from his speech
THE past few years have been a difficult one for the Singapore Airlines group, and therefore a difficult one for its employees. The SIA Staff Union (Siasu) members have decided to place their trust in experienced hands.
The next few years will be difficult ones for SIA. Established network carriers are being challenged by new airlines.
Technology is changing the network structures, and the travel market may be differentiating. Low-cost and low-frills carriers provide a competitive business model to challenge the established network carriers.
These developments will test SIA's skills to maintain its position as the leading premium carrier in the world.
Since its inception, SIA has been able to grow its business - delivering premium service from a low-cost base. Over time, this low-cost base has changed as wages in Singapore rise, accelerated by the appreciation of the Singapore dollar.
Innovations in service no longer fetch additional premium in fares. Therefore, SIA has to restructure its cost base.
SIA has consistently adopted the strategy of using newer planes that use less fuel, and hedged against sharp changes in fuel prices. It has also astutely acquired aircraft at competitive prices, lowering capital costs. The low gearing of the company also means that it incurs low financing costs.
At the same time, SIA has maximised revenue, by offering a premium service, as well as raising load factors with commercial alliances, such as code-sharing and through the Star Alliance.
Recently, SIA has had to look harder at manpower costs.
Let us take a lesson from the cycles that civil aviation has gone through in other countries, to use it as a mirror to look at ourselves.
American airlines typically grow into big airlines. Then new start-ups appear on the scene. These start-ups seem to be more competitive, putting the established airlines under tremendous pressure.
The established airlines then go through painful restructuring, survive for a few more years, and finally go under. The new airlines then grow, filling the space of the defunct carriers. Then they, in turn, are put under pressure by new start-ups. The cycle is repeated.
Why is this so? One of the key reasons is the seniority-based wage system prevalent in the airline industry. Pilots and cabin crew are paid higher wages if they have served longer. They also have a rule that if there is any redundancy, staff are retrenched by the 'last-in-first-out' principle, not by performance!
Therefore the result is that the established carriers carry a higher wage bill than the start-ups. The difference can be very substantial. A quick scan of the wage share of operating costs of US airlines reveals that wages make up 25-40 per cent of total operating costs. That is quite a range, and explains why new start-ups are profitable while the established (or 'legacy') carriers suffer huge losses.
Yes, it is true that the business model of low-cost carriers contributes to the plight of the established carriers. Their low fares make it impossible for established carriers to raise their fares. But we are also witnessing the older low-cost carriers coming under pressure from new start-ups, suggesting that they too are suffering from the same structural wage cost problem.
Now, let us look at SIA. Fortunately its wage bill takes up a lower share of total operating costs than US airlines - about 20 per cent. However, the wage system is seniority-based also.
So there is a structural wage problem too. It means that wage restructuring is absolutely necessary for the airline to remain competitive.
Pilots and cabin crew make up 61 per cent of employees and account for 64 per cent of wages. Obviously, it is meaningless to restructure the wages of SIA employees if the wage system for pilots and cabin crew remain intact.
We must also note that any increase in any of the components of wages of pilots and cabin crew will have a bigger impact on the wage bill than increases elsewhere.
Let us take a closer look at the figures. Cabin crew make up 47 per cent of employees, but account for 30 per cent of the wage bill. The pilots make up 14 per cent of employees, but account for 34 per cent of the wage bill. I understand that the wage bill of pilots in network airlines is about one-third the total wage bill.
So the proportion in SIA is about the same as in the industry.
Certainly, the pilots possess essential skills that fetch a premium. But if we need to restructure the wage package, it has to be done for all categories of employees. Leaving out a group that accounts for a large part of the wage bill will be unfair, and of much less effect for the airline.
What is it that should be achieved in restructuring wages? Is it a cut in wages?
SIA is not in the precarious position of the US carriers that are asking their unions to agree to sharp wage cuts. What SIA needs is a wage structure that will enable the airline to price its seats competitively, but reward its employees fairly.
Take a look at what PSA Corp has done. It has kept fixed wages down. There was a cut in the fixed monthly wages of the higher-income earners in PSA, but no cut in the fixed monthly wages of the lower-income earners. This allowed PSA to price its box-handling rates competitively. The result is higher volumes of cargo moved, leading to higher revenue and higher surpluses.
The variable payments that PSA employees get then go up. Under the restructured wage package, PSA employees are going to take home more than before.
SIA and its unions should work out a wage package along similar lines. With competitive prices, load factors can rise, leading to higher revenue and profits, and therefore higher bonuses for employees. Overall, what employees take home each year can be higher.
This is the challenge that the executive council has before it. I expect that the strong leadership in Siasu will show the way forward.
Interesting to see if the ST invites Alpa-S to comment/rebut (don’t hold your collective breath!)
Straits Times, 16 July 2004
Why SIA's seniority-based wage system must go
SIA's wage structure should be such that it can offer competitive pricing and reward employees fairly, said labour chief Lim Boon Heng, addressing SIA Staff Union delegates on Wednesday. The following is an excerpt from his speech
THE past few years have been a difficult one for the Singapore Airlines group, and therefore a difficult one for its employees. The SIA Staff Union (Siasu) members have decided to place their trust in experienced hands.
The next few years will be difficult ones for SIA. Established network carriers are being challenged by new airlines.
Technology is changing the network structures, and the travel market may be differentiating. Low-cost and low-frills carriers provide a competitive business model to challenge the established network carriers.
These developments will test SIA's skills to maintain its position as the leading premium carrier in the world.
Since its inception, SIA has been able to grow its business - delivering premium service from a low-cost base. Over time, this low-cost base has changed as wages in Singapore rise, accelerated by the appreciation of the Singapore dollar.
Innovations in service no longer fetch additional premium in fares. Therefore, SIA has to restructure its cost base.
SIA has consistently adopted the strategy of using newer planes that use less fuel, and hedged against sharp changes in fuel prices. It has also astutely acquired aircraft at competitive prices, lowering capital costs. The low gearing of the company also means that it incurs low financing costs.
At the same time, SIA has maximised revenue, by offering a premium service, as well as raising load factors with commercial alliances, such as code-sharing and through the Star Alliance.
Recently, SIA has had to look harder at manpower costs.
Let us take a lesson from the cycles that civil aviation has gone through in other countries, to use it as a mirror to look at ourselves.
American airlines typically grow into big airlines. Then new start-ups appear on the scene. These start-ups seem to be more competitive, putting the established airlines under tremendous pressure.
The established airlines then go through painful restructuring, survive for a few more years, and finally go under. The new airlines then grow, filling the space of the defunct carriers. Then they, in turn, are put under pressure by new start-ups. The cycle is repeated.
Why is this so? One of the key reasons is the seniority-based wage system prevalent in the airline industry. Pilots and cabin crew are paid higher wages if they have served longer. They also have a rule that if there is any redundancy, staff are retrenched by the 'last-in-first-out' principle, not by performance!
Therefore the result is that the established carriers carry a higher wage bill than the start-ups. The difference can be very substantial. A quick scan of the wage share of operating costs of US airlines reveals that wages make up 25-40 per cent of total operating costs. That is quite a range, and explains why new start-ups are profitable while the established (or 'legacy') carriers suffer huge losses.
Yes, it is true that the business model of low-cost carriers contributes to the plight of the established carriers. Their low fares make it impossible for established carriers to raise their fares. But we are also witnessing the older low-cost carriers coming under pressure from new start-ups, suggesting that they too are suffering from the same structural wage cost problem.
Now, let us look at SIA. Fortunately its wage bill takes up a lower share of total operating costs than US airlines - about 20 per cent. However, the wage system is seniority-based also.
So there is a structural wage problem too. It means that wage restructuring is absolutely necessary for the airline to remain competitive.
Pilots and cabin crew make up 61 per cent of employees and account for 64 per cent of wages. Obviously, it is meaningless to restructure the wages of SIA employees if the wage system for pilots and cabin crew remain intact.
We must also note that any increase in any of the components of wages of pilots and cabin crew will have a bigger impact on the wage bill than increases elsewhere.
Let us take a closer look at the figures. Cabin crew make up 47 per cent of employees, but account for 30 per cent of the wage bill. The pilots make up 14 per cent of employees, but account for 34 per cent of the wage bill. I understand that the wage bill of pilots in network airlines is about one-third the total wage bill.
So the proportion in SIA is about the same as in the industry.
Certainly, the pilots possess essential skills that fetch a premium. But if we need to restructure the wage package, it has to be done for all categories of employees. Leaving out a group that accounts for a large part of the wage bill will be unfair, and of much less effect for the airline.
What is it that should be achieved in restructuring wages? Is it a cut in wages?
SIA is not in the precarious position of the US carriers that are asking their unions to agree to sharp wage cuts. What SIA needs is a wage structure that will enable the airline to price its seats competitively, but reward its employees fairly.
Take a look at what PSA Corp has done. It has kept fixed wages down. There was a cut in the fixed monthly wages of the higher-income earners in PSA, but no cut in the fixed monthly wages of the lower-income earners. This allowed PSA to price its box-handling rates competitively. The result is higher volumes of cargo moved, leading to higher revenue and higher surpluses.
The variable payments that PSA employees get then go up. Under the restructured wage package, PSA employees are going to take home more than before.
SIA and its unions should work out a wage package along similar lines. With competitive prices, load factors can rise, leading to higher revenue and profits, and therefore higher bonuses for employees. Overall, what employees take home each year can be higher.
This is the challenge that the executive council has before it. I expect that the strong leadership in Siasu will show the way forward.
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Is that Siasu or Kiasu?
And this is from a man whose own professional group chose not to take a pay cut during Sars whilst they preached and demanded the same from the rest of the workforce!
And this is from a man whose own professional group chose not to take a pay cut during Sars whilst they preached and demanded the same from the rest of the workforce!
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PM Goh Chok Tong hands over the reins of PM to Lee Hsien Loong from August 12th who of course is son of SM LKY. The new PM's wife is the boss of Temasek Holdings the Singapore Govt Investment arm the majority owner of SQ.
The first thing that will happen is LKY will see to it that his son stamps down hard on any signs of trouble within SQ, now that the nice Mr Goh has been removed from the scene and into obscurity.
Will Bloomberg dare to suggest ( as they did about Mrs Lee in Temasek ) this being a clear case of nepotism??? I guess they will not as they were frightened off. Standby to be well and truly shafted!
The first thing that will happen is LKY will see to it that his son stamps down hard on any signs of trouble within SQ, now that the nice Mr Goh has been removed from the scene and into obscurity.
Will Bloomberg dare to suggest ( as they did about Mrs Lee in Temasek ) this being a clear case of nepotism??? I guess they will not as they were frightened off. Standby to be well and truly shafted!
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I guess any day now the ST will be running the other side of the story when it prints the rebuttals of the various unions! Anyone holding their breath?
Straits Times, 19 July 2004
SIA medical benefits excessive: minister
Most of the airline's staff enjoy A-Class hospital perks which are not in line with industry norms, says Ng Eng Hen
By Soh Wen Lin
WHILE Singapore Airlines' generous employee benefits are well-known, Acting Manpower Minister Ng Eng Hen yesterday highlighted key areas where they had become what he called 'excessive and unsustainable'.
For example, about 85 per cent of the airline's workforce of about 29,000 enjoy A-Class hospital benefits and there is no cap on both their medical and retrenchment benefits.
This is 'out of line with all other companies' as well as the guidelines of the tripartite taskforce, said Dr Ng.
His comments on these features of SIA's benefits come on the heels of labour chief Lim Boon Heng's statement last week that the Manpower Ministry had been approached to aid wage negotiations for a new collective agreement between SIA and the pilots' union.
Dr Ng was speaking at a dialogue with 200 residents in the Admiralty ward of Sembawang GRC.
SIA's seniority-based wage system cannot continue in the long run although employees may prefer it to stay unchanged, said the minister.
The benefits, he added, must be brought in line with the industry: 'Benefits such as these are disproportionate and excessive.'
Dr Ng said his ministry will use the tripartite guidelines as benchmarks during the talks as SIA needs to restructure its costs, 'not just for this year, but for the long haul'.
The tripartite guidelines - as agreed by Government, unions and management - include a 25-year cap for retrenchment benefits and having a variable component in wages.
Dr Ng also dwelt on the new challenges confronting SIA, including low-cost carriers, emerging air-hub rivals and long-haul planes.
'If SIA can offer non-stop flights from Singapore to New York, certainly Australia can offer flights to Europe, skipping Singapore, for example,' he said.
'These changes will persist for the next five, 10, 15 years.'
And what happens in Singapore's air hub and aviation industry, which contributes 9 per cent to Singapore's output and 120,000 jobs, trickles down to the tourism, retail and aerospace industries, he added.
'So not just SIA, but the civil aviation authority, ST Aerospace, terminal services, ST Engineering, all must adjust.'
He said that the SIA union leaders he had spoken to said that they understood the challenges and recognised the need for sometimes painful changes.
Now the 'union leaders must explain to their members why the changes are necessary', he said. 'And management must continue to work with unions to forge trust.'
He acknowledged that employees would find it hard to give up their benefits.
However, the stakes are high, with other countries and companies watching closely, he said, urging SIA to demonstrate that it was willing to take decisive steps.
Another issue raised at the dialogue was over jobs. Dr Ng explained why Singaporeans may still be struggling even amid the economic recovery.
He said that between 1987 and 1997 Singapore created three new jobs for every graduate, but the next five tough years put a squeeze on everyone and some skills were made obsolete.
So although jobs and growth were returning this year, it would take another few good years to make up for the last five years, especially when some workers have had to reskill themselves.
The dialogue capped a four-hour visit to the Admiralty ward.
During the visit, Dr Ng and several MPs, including the ward's MP, Dr Mohamad Maliki Osman, whipped up a range of dishes for a food auction that raised $31,000 for charity.
Soya sauce maker Choo Wai Luen topped the bids by paying $10,000 for a plate of vegetarian satay cooked by Dr Ng, and $8,000 for Mr Maliki's pineapple fried rice.
The managing director of Kwong Cheong Thye said with a smile when asked about his expensive taste: 'It's okay. It's for charity.'
Straits Times, 19 July 2004
SIA medical benefits excessive: minister
Most of the airline's staff enjoy A-Class hospital perks which are not in line with industry norms, says Ng Eng Hen
By Soh Wen Lin
WHILE Singapore Airlines' generous employee benefits are well-known, Acting Manpower Minister Ng Eng Hen yesterday highlighted key areas where they had become what he called 'excessive and unsustainable'.
For example, about 85 per cent of the airline's workforce of about 29,000 enjoy A-Class hospital benefits and there is no cap on both their medical and retrenchment benefits.
This is 'out of line with all other companies' as well as the guidelines of the tripartite taskforce, said Dr Ng.
His comments on these features of SIA's benefits come on the heels of labour chief Lim Boon Heng's statement last week that the Manpower Ministry had been approached to aid wage negotiations for a new collective agreement between SIA and the pilots' union.
Dr Ng was speaking at a dialogue with 200 residents in the Admiralty ward of Sembawang GRC.
SIA's seniority-based wage system cannot continue in the long run although employees may prefer it to stay unchanged, said the minister.
The benefits, he added, must be brought in line with the industry: 'Benefits such as these are disproportionate and excessive.'
Dr Ng said his ministry will use the tripartite guidelines as benchmarks during the talks as SIA needs to restructure its costs, 'not just for this year, but for the long haul'.
The tripartite guidelines - as agreed by Government, unions and management - include a 25-year cap for retrenchment benefits and having a variable component in wages.
Dr Ng also dwelt on the new challenges confronting SIA, including low-cost carriers, emerging air-hub rivals and long-haul planes.
'If SIA can offer non-stop flights from Singapore to New York, certainly Australia can offer flights to Europe, skipping Singapore, for example,' he said.
'These changes will persist for the next five, 10, 15 years.'
And what happens in Singapore's air hub and aviation industry, which contributes 9 per cent to Singapore's output and 120,000 jobs, trickles down to the tourism, retail and aerospace industries, he added.
'So not just SIA, but the civil aviation authority, ST Aerospace, terminal services, ST Engineering, all must adjust.'
He said that the SIA union leaders he had spoken to said that they understood the challenges and recognised the need for sometimes painful changes.
Now the 'union leaders must explain to their members why the changes are necessary', he said. 'And management must continue to work with unions to forge trust.'
He acknowledged that employees would find it hard to give up their benefits.
However, the stakes are high, with other countries and companies watching closely, he said, urging SIA to demonstrate that it was willing to take decisive steps.
Another issue raised at the dialogue was over jobs. Dr Ng explained why Singaporeans may still be struggling even amid the economic recovery.
He said that between 1987 and 1997 Singapore created three new jobs for every graduate, but the next five tough years put a squeeze on everyone and some skills were made obsolete.
So although jobs and growth were returning this year, it would take another few good years to make up for the last five years, especially when some workers have had to reskill themselves.
The dialogue capped a four-hour visit to the Admiralty ward.
During the visit, Dr Ng and several MPs, including the ward's MP, Dr Mohamad Maliki Osman, whipped up a range of dishes for a food auction that raised $31,000 for charity.
Soya sauce maker Choo Wai Luen topped the bids by paying $10,000 for a plate of vegetarian satay cooked by Dr Ng, and $8,000 for Mr Maliki's pineapple fried rice.
The managing director of Kwong Cheong Thye said with a smile when asked about his expensive taste: 'It's okay. It's for charity.'
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Old news
You all need to get a life.
All this is old news.
This thread is way over used and needs an ending.
Things here will never change, so it is pointless 'smokin' and
get everyone cheesed-off.
Like someone once said: ' You're all here because there is
no where else to go"
HAR HAR
p.s to Capt Pprune: Pls terminate this thread.
thanks
All this is old news.
This thread is way over used and needs an ending.
Things here will never change, so it is pointless 'smokin' and
get everyone cheesed-off.
Like someone once said: ' You're all here because there is
no where else to go"
HAR HAR
p.s to Capt Pprune: Pls terminate this thread.
thanks
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I beg to differ 422, this thread is about the continuing erosion of conditions at SIA. All of the recent news clippings and subsequent comments reflect the ongoing campaign by government and management to change the monetary conditions of the pilots at SIA. If you are tired of the thread then move on and leave it to those who are interested.
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Window dressing
Nice to know there is still "hope" out there.
Window dressing in progress so things should
look good.
Sadly , what u see is not what u get these days.
Everyone is here because there is no where else to go.
Brace brace.
Window dressing in progress so things should
look good.
Sadly , what u see is not what u get these days.
Everyone is here because there is no where else to go.
Brace brace.
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Sunday Times, Sunday 1 Aug 2004
Labour chief: I'll still be involved in SIA, its unions
LABOUR chief Lim Boon Heng will continue to be involved in Singapore Airlines and its unions, even after resigning from the company's board of directors.
Speaking to The Sunday Times on the sidelines of a grassroots event last night, he said: 'So long as I have my responsibilities in the NTUC, I expect I shall continue to be involved in one way or the other with the issues that the SIA and its unions face.'
He has been involved in the industrial relations of SIA since 1981, when he joined the National Trades Union Congress (NTUC). In 1997, he was appointed to SIA's board to strengthen the close industrial relations in the company. His departure from the board was announced by SIA chairman Koh Boon Hwee last Thursday.
His years on the board have given him a better understanding of the airline business, said Mr Lim. 'So with a good understanding of the airline business, it helps me give appropriate guidance...'
He also said there was 'no real compelling need' for another labour movement representative to be on SIA's board. 'For time being, I think let's leave it as it is. Let's see whether we can work just as I did before I went on the board.'
- Such sweet irony as only Singapore can produce!
Labour chief: I'll still be involved in SIA, its unions
LABOUR chief Lim Boon Heng will continue to be involved in Singapore Airlines and its unions, even after resigning from the company's board of directors.
Speaking to The Sunday Times on the sidelines of a grassroots event last night, he said: 'So long as I have my responsibilities in the NTUC, I expect I shall continue to be involved in one way or the other with the issues that the SIA and its unions face.'
He has been involved in the industrial relations of SIA since 1981, when he joined the National Trades Union Congress (NTUC). In 1997, he was appointed to SIA's board to strengthen the close industrial relations in the company. His departure from the board was announced by SIA chairman Koh Boon Hwee last Thursday.
His years on the board have given him a better understanding of the airline business, said Mr Lim. 'So with a good understanding of the airline business, it helps me give appropriate guidance...'
He also said there was 'no real compelling need' for another labour movement representative to be on SIA's board. 'For time being, I think let's leave it as it is. Let's see whether we can work just as I did before I went on the board.'
- Such sweet irony as only Singapore can produce!
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Straits Times, 2 August 2004
Labour chief upbeat that SIA, unions can resolve wage talks
Talks ongoing between management and NTUC-affiliated unions on wage structure but gap between positions is 'quite narrow'
By Azrin Asmani
LABOUR chief Lim Boon Heng has expressed confidence that Singapore Airlines (SIA) and four of its unions that are affiliated to the National Trades Union Congress (NTUC) can resolve negotiations on a wage structure in a matter of weeks.
The national carrier, which has restored to staff what they lost in wage cuts over the past year, plus an additional 15 per cent, is still in talks with union representatives on a future wage structure.*
But Mr Lim, who was asked by reporters yesterday for an update on the state of discussions, said that 'as far as the four affiliates of the NTUC are concerned, a lot of progress has been made'.†
He did not go into the specifics of the negotiations but said that the gap between their positions and the management's 'is actually quite narrow'.
'Both parties should feel they should be able to come to agreement on all the matters within a few weeks,' he told reporters after the official opening of the $20-million Wild Wild Wet theme park at NTUC Club's Downtown East in Pasir Ris.
The four NTUC-affiliated unions are the SIA Staff Union, Singapore Airport Terminal Services Workers' Union, SIA Engineering Company Engineers and Executives Union, and the Air Transport Executive Staff Union.
Mr Lim had previously made the point that SIA must restructure its wages to remain competitive and this must apply to all employees, including cabin crew and pilots.
The Air Line Pilots Association Singapore (Alpa-S) is not under the NTUC umbrella but Mr Lim said last week that talks between Alpa-S and the airline on a new wage deal would not end up in the Industrial Arbitration Court if both sides 'work harder' and stay 'objective'.
The Manpower Ministry is helping both sides resolve differences, which are reportedly over pay and the number of rest days.
*Just to be completely accurate, repayment was made for lost salary during year 2003-4, up until 31 March 2004. The pay cut remains in force to this day and it also remains a moot point as to whether repayment plus 15% will be made for salary lost from 1 April 2004 onwards.
†Code for "they are buckling under nicely to government pressure".
Labour chief upbeat that SIA, unions can resolve wage talks
Talks ongoing between management and NTUC-affiliated unions on wage structure but gap between positions is 'quite narrow'
By Azrin Asmani
LABOUR chief Lim Boon Heng has expressed confidence that Singapore Airlines (SIA) and four of its unions that are affiliated to the National Trades Union Congress (NTUC) can resolve negotiations on a wage structure in a matter of weeks.
The national carrier, which has restored to staff what they lost in wage cuts over the past year, plus an additional 15 per cent, is still in talks with union representatives on a future wage structure.*
But Mr Lim, who was asked by reporters yesterday for an update on the state of discussions, said that 'as far as the four affiliates of the NTUC are concerned, a lot of progress has been made'.†
He did not go into the specifics of the negotiations but said that the gap between their positions and the management's 'is actually quite narrow'.
'Both parties should feel they should be able to come to agreement on all the matters within a few weeks,' he told reporters after the official opening of the $20-million Wild Wild Wet theme park at NTUC Club's Downtown East in Pasir Ris.
The four NTUC-affiliated unions are the SIA Staff Union, Singapore Airport Terminal Services Workers' Union, SIA Engineering Company Engineers and Executives Union, and the Air Transport Executive Staff Union.
Mr Lim had previously made the point that SIA must restructure its wages to remain competitive and this must apply to all employees, including cabin crew and pilots.
The Air Line Pilots Association Singapore (Alpa-S) is not under the NTUC umbrella but Mr Lim said last week that talks between Alpa-S and the airline on a new wage deal would not end up in the Industrial Arbitration Court if both sides 'work harder' and stay 'objective'.
The Manpower Ministry is helping both sides resolve differences, which are reportedly over pay and the number of rest days.
*Just to be completely accurate, repayment was made for lost salary during year 2003-4, up until 31 March 2004. The pay cut remains in force to this day and it also remains a moot point as to whether repayment plus 15% will be made for salary lost from 1 April 2004 onwards.
†Code for "they are buckling under nicely to government pressure".
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News Release on the 1st Quarter 2004-05 Financial Result, issued by Public Affairs on July 30, 2004.
HIGHLIGHTS OF THE GROUP'S PERFORMANCE
•Operating profit $307 million
•Net profit attributable to shareholders $259 million
•Earnings per share 21.2 cents
GROUP EARNINGS
The Group turned in a first quarter net profit attributable to shareholders of $259 million, a rebound from the $312 million loss in the same period last year, which was adversely affected by the Severe Acute Respiratory Syndrome (SARS).
Group operating profit of $307 million was a $684 million turnaround from first quarter last year, a result of strong revenue growth of $1,072 million (+64.8%) to $2,725 million coupled with a more measured increase in expenditure of $387 million (+19.1%) to $2,418 million. For perspective, revenue for the current quarter surpassed the $2,539 million recorded for the same quarter in 2002 by a respectable 7.3%.
Fuel prices and foreign exchange movements were two significant factors that affected the quarter's performance. For the Group, higher fuel prices added $80 million to expenditure after accounting for a hedging gain of $73 million. On the other hand, the strength of major revenue generating currencies, particularly the Australian dollar and British pound, coupled with cost savings from a weaker US dollar against Singapore dollar provided a net gain of $81 million to the operating profit of the SIA Group.
The Company produced an operating profit of $163 million, which was 53.0% of the operating profit of the SIA Group. The three major subsidiaries, namely the Singapore Airport Terminal Services (SATS) group, SIA Engineering Company (SIAEC) group and Singapore Airlines Cargo (SIA Cargo) contributed 16.4%, 10.8-% and 16.4% respectively to the Group's operating profit.
- Obviously SIA desperately needs to continue its squeeze on its captive employees!
HIGHLIGHTS OF THE GROUP'S PERFORMANCE
•Operating profit $307 million
•Net profit attributable to shareholders $259 million
•Earnings per share 21.2 cents
GROUP EARNINGS
The Group turned in a first quarter net profit attributable to shareholders of $259 million, a rebound from the $312 million loss in the same period last year, which was adversely affected by the Severe Acute Respiratory Syndrome (SARS).
Group operating profit of $307 million was a $684 million turnaround from first quarter last year, a result of strong revenue growth of $1,072 million (+64.8%) to $2,725 million coupled with a more measured increase in expenditure of $387 million (+19.1%) to $2,418 million. For perspective, revenue for the current quarter surpassed the $2,539 million recorded for the same quarter in 2002 by a respectable 7.3%.
Fuel prices and foreign exchange movements were two significant factors that affected the quarter's performance. For the Group, higher fuel prices added $80 million to expenditure after accounting for a hedging gain of $73 million. On the other hand, the strength of major revenue generating currencies, particularly the Australian dollar and British pound, coupled with cost savings from a weaker US dollar against Singapore dollar provided a net gain of $81 million to the operating profit of the SIA Group.
The Company produced an operating profit of $163 million, which was 53.0% of the operating profit of the SIA Group. The three major subsidiaries, namely the Singapore Airport Terminal Services (SATS) group, SIA Engineering Company (SIAEC) group and Singapore Airlines Cargo (SIA Cargo) contributed 16.4%, 10.8-% and 16.4% respectively to the Group's operating profit.
- Obviously SIA desperately needs to continue its squeeze on its captive employees!
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An American Perspective
From Kevin Maney’s Technology Column, USA Today, 5 August 2004.
“Apple is behaving stupidly as usual (as with its Macs of 1985, it is attempting total control of its latest I-pod product rather than going for open architecture and licenced production) with regard to allowing other companies to add value to its products”, says Avram Miller, a tech investor and former vice president at Intel, which benefited greatly from Job’s (Apple CEO) past mistakes. “It can only lead to reducing Apple’s share of the market it helped create.”
Miller goes on to call Apple “the Singapore of computing”.
“You know Singapore: autocratic, insular, elegantly engineered, repressively controlled – and destined to never amount to more than a small but interesting dot on the world map.”
From Kevin Maney’s Technology Column, USA Today, 5 August 2004.
“Apple is behaving stupidly as usual (as with its Macs of 1985, it is attempting total control of its latest I-pod product rather than going for open architecture and licenced production) with regard to allowing other companies to add value to its products”, says Avram Miller, a tech investor and former vice president at Intel, which benefited greatly from Job’s (Apple CEO) past mistakes. “It can only lead to reducing Apple’s share of the market it helped create.”
Miller goes on to call Apple “the Singapore of computing”.
“You know Singapore: autocratic, insular, elegantly engineered, repressively controlled – and destined to never amount to more than a small but interesting dot on the world map.”
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Yes I can see some parallels here between Steve Jobs’ Apple Corp and Singapore Inc. (as administered by the Singapore Government). Whilst both turn out excellent products, the personal control freakiness and overweening arrogance of both top managements continues to preclude overall marketing success, on the one hand attempting a "lock in" of customers by refusing to licence IPod technology and on the other by sticking to a similarly dated and flawed approach towards the recruiting and retention of its flight crews for SIA, Silk Air and now Tiger, by similarly locking them in with Bonds and Bank guarantees.
As Nomansland has posted on another thread, “Tiger is asking for type rated A320 pilots to post a 25,000 sgd bond to have one's licence converted to the Singapore authority whilst two other low cost airlines, Valuair, and Jetstar Asia, that will be operating A320's before the end of the year in Singapore, (have) no such requirement.
I don't think there are too many A320 pilots out of work these days, so I pose the question, Is it worth paying 25000 sgd to work with Tiger Airways?”
Indeed so, just as the question will shortly be why bother buying an (expensive) IPod when we’ll shortly be able to buy something just as good for half the price and minimal hassle that will also download and play the currently proprietary Itunes music and won't require us to be locked in to IPod?
It’s called market choice – something that both Apple and the Singapore Government don’t seem too keen on respectively offering, in the case of Apple, to their customers, or, in the case of the Singapore Government, to their Singapore based pilots!
PS. Interesting that Tiger is now advertising on Pprune – prospective recruits should perhaps check out the Valuair and Jetstar Asia web sites – in the interests of market choice!
As Nomansland has posted on another thread, “Tiger is asking for type rated A320 pilots to post a 25,000 sgd bond to have one's licence converted to the Singapore authority whilst two other low cost airlines, Valuair, and Jetstar Asia, that will be operating A320's before the end of the year in Singapore, (have) no such requirement.
I don't think there are too many A320 pilots out of work these days, so I pose the question, Is it worth paying 25000 sgd to work with Tiger Airways?”
Indeed so, just as the question will shortly be why bother buying an (expensive) IPod when we’ll shortly be able to buy something just as good for half the price and minimal hassle that will also download and play the currently proprietary Itunes music and won't require us to be locked in to IPod?
It’s called market choice – something that both Apple and the Singapore Government don’t seem too keen on respectively offering, in the case of Apple, to their customers, or, in the case of the Singapore Government, to their Singapore based pilots!
PS. Interesting that Tiger is now advertising on Pprune – prospective recruits should perhaps check out the Valuair and Jetstar Asia web sites – in the interests of market choice!
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Straits Times, 17 Aug 2004
SIA's passenger load rises to 78%
SINGAPORE Airlines' (SIA's) business continued to grow last month during which it carried more passengers than in June as well as in July last year.
Releasing its monthly figures yesterday, the carrier said it flew 1.39 million passengers last month. In June, it sold 1.31 million seats, and in July last year, 1.17 millions.
All in, SIA filled 78 per cent of its seats last month, up from June's 75.5 per cent.
However, the cargo business dropped, pulling down its overall business, said the airline. Just 68.8 per cent of its seats and cargo space were taken up last month, lower than in June and a year earlier.
It managed 70.4 per cent in June this year and 70.9 per cent in July last year. The drop year-on-year was 2.1 percentage points.
Still, its cargo arm, SIA Cargo, has added a Boeing 747-400 freighter to its fleet, bringing the number of aircraft it has to 14.
This allows the carrier to increase the number of its flights with freight. Starting Sept 26, it will fly three times a week on the Singapore-Bangalore-Amsterdam route and the Singapore-Xiamen-Nanjing-Los Angeles route. It has two flights a week now.
Battered by a slump in travel because of Sars and the Iraq war last year, SIA recovered quickly to post a $849-million profit for the year ended March 31, after making a first-quarter loss of $312 million.
SIA's passenger load rises to 78%
SINGAPORE Airlines' (SIA's) business continued to grow last month during which it carried more passengers than in June as well as in July last year.
Releasing its monthly figures yesterday, the carrier said it flew 1.39 million passengers last month. In June, it sold 1.31 million seats, and in July last year, 1.17 millions.
All in, SIA filled 78 per cent of its seats last month, up from June's 75.5 per cent.
However, the cargo business dropped, pulling down its overall business, said the airline. Just 68.8 per cent of its seats and cargo space were taken up last month, lower than in June and a year earlier.
It managed 70.4 per cent in June this year and 70.9 per cent in July last year. The drop year-on-year was 2.1 percentage points.
Still, its cargo arm, SIA Cargo, has added a Boeing 747-400 freighter to its fleet, bringing the number of aircraft it has to 14.
This allows the carrier to increase the number of its flights with freight. Starting Sept 26, it will fly three times a week on the Singapore-Bangalore-Amsterdam route and the Singapore-Xiamen-Nanjing-Los Angeles route. It has two flights a week now.
Battered by a slump in travel because of Sars and the Iraq war last year, SIA recovered quickly to post a $849-million profit for the year ended March 31, after making a first-quarter loss of $312 million.
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Love SQ?
Since everyone on this thread loves SQ so much,
So why not some news.
With OIL going to the moon, lets say 50$ by christmas.
Another round of PAYCUTS for everyone in SQ.
another 25% sounds fair, dosen't it?
With the pay cut, less people will leave SQ for fear they will
be stopped by the M-M.
But the future is good in so far as the Co is concerned.
Another 1.5B SGD looks possible by APRIL next year.
Welcome to SQ ...
So why not some news.
With OIL going to the moon, lets say 50$ by christmas.
Another round of PAYCUTS for everyone in SQ.
another 25% sounds fair, dosen't it?
With the pay cut, less people will leave SQ for fear they will
be stopped by the M-M.
But the future is good in so far as the Co is concerned.
Another 1.5B SGD looks possible by APRIL next year.
Welcome to SQ ...
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Now that our beloved Senior Vice President (Human Resources) has recently been bypassed in negotiation and therefore working for food stamps and preferential places in soup queues has disappeared as an SIA preferred pilot remuneration option, progress of sorts has been possible between the Airline and Alpa-s to the extent that a “points of agreement” document has been formulated between the parties as the basis for a full Collective Agreement, to be effective for a three year period from 8 September 2004.
Whilst I guess that all of us pilots will be happy that “good cop”, SIA CEO has stepped in and prevailed against “bad cop” SVP (HR) – where have we seen this scenario before? –a question is begged and observations require to be made.
Question 1. Now that the pilot basic monthly salary max:min range is proposed to be 1.65 and hence within newly formulated government guidelines, will the Company’s senior B744 captains (proposed salary range $10.000 - $16,500), currently earning well in excess of the new top figure of $16,500, imminently be taking a significant pay cut to reduce to this new top level?
Observation 1. The Company arrogates to itself the “flexibility” to pay up to $30,000 as a one-off lump sum “joining bonus” to direct entry (ex-pat) captains and as a consequence, to “do away” with the expatriation allowance for new captains. The sums are as follows:
Expatriation Allowance (married) $ 1,025 per month = $12,300 per annum = $61,500 per 5 year contract
Gain to SIA/Loss to new captain, post new arrangement = $31,500
This is certainly a “Golden Hello” Singapore style! No doubt to be trumpeted on the back pages of up-coming editions of Flight International as a means of enticing available innocents to sign on and help plug the gaps in the now seriously undermanned ranks of the B744F and B777 fleets. Potential joiners note the simple sum and those imminent signers calculate the loss you will incur!
Observation 2. It is proposed “to introduce an agreed basis for review of the house rental assistance and child education assistance, so as to enable the Company to adjust quantum according to market movement”. I would expect from long and extremely weary experience that the former is proposed to be reduced as the housing market is soft at the moment - never to be raised again when the market firms and that the latter will remain exactly where it is, despite constant school fee increases over the past few years.
Recruitment Warning. Allowances can go down but never up.
Observation 3. It is not overtly stated but the proposal “to introduce an end-of-contract gratuity scheme for pilots on ex-patriot terms at the rate of $10,000 per year of service” is in respect of existing pilot beneficiaries of the Singapore Provident Fund (SPF) which was peremptorily and (opinion has it) illegally suspended last year by our resident genius, PAP luminary, the SVP (HR), as a panic post SARS cost saving move (despite it being an integral and fundamental element of most ex-pat pilot’s contracts for that time being). The Company formerly contributed to the SPF an additional remuneration sum, equaling 10% of the individual pilot’s monthly salary. The sums are:
Ten percent of average SPF pilot salary (approx $12,000) = $1,200 per month = $14,400 per annum = $72,000 per 5 year contract
Proposed new payment of $10,000 per annum = $50,000 per 5 year contract
Gain to SIA/Loss to SPF captain, post new arrangement = $22,000
Once again, another “Singapore Style” solution!
Happy flying guys!
Whilst I guess that all of us pilots will be happy that “good cop”, SIA CEO has stepped in and prevailed against “bad cop” SVP (HR) – where have we seen this scenario before? –a question is begged and observations require to be made.
Question 1. Now that the pilot basic monthly salary max:min range is proposed to be 1.65 and hence within newly formulated government guidelines, will the Company’s senior B744 captains (proposed salary range $10.000 - $16,500), currently earning well in excess of the new top figure of $16,500, imminently be taking a significant pay cut to reduce to this new top level?
Observation 1. The Company arrogates to itself the “flexibility” to pay up to $30,000 as a one-off lump sum “joining bonus” to direct entry (ex-pat) captains and as a consequence, to “do away” with the expatriation allowance for new captains. The sums are as follows:
Expatriation Allowance (married) $ 1,025 per month = $12,300 per annum = $61,500 per 5 year contract
Gain to SIA/Loss to new captain, post new arrangement = $31,500
This is certainly a “Golden Hello” Singapore style! No doubt to be trumpeted on the back pages of up-coming editions of Flight International as a means of enticing available innocents to sign on and help plug the gaps in the now seriously undermanned ranks of the B744F and B777 fleets. Potential joiners note the simple sum and those imminent signers calculate the loss you will incur!
Observation 2. It is proposed “to introduce an agreed basis for review of the house rental assistance and child education assistance, so as to enable the Company to adjust quantum according to market movement”. I would expect from long and extremely weary experience that the former is proposed to be reduced as the housing market is soft at the moment - never to be raised again when the market firms and that the latter will remain exactly where it is, despite constant school fee increases over the past few years.
Recruitment Warning. Allowances can go down but never up.
Observation 3. It is not overtly stated but the proposal “to introduce an end-of-contract gratuity scheme for pilots on ex-patriot terms at the rate of $10,000 per year of service” is in respect of existing pilot beneficiaries of the Singapore Provident Fund (SPF) which was peremptorily and (opinion has it) illegally suspended last year by our resident genius, PAP luminary, the SVP (HR), as a panic post SARS cost saving move (despite it being an integral and fundamental element of most ex-pat pilot’s contracts for that time being). The Company formerly contributed to the SPF an additional remuneration sum, equaling 10% of the individual pilot’s monthly salary. The sums are:
Ten percent of average SPF pilot salary (approx $12,000) = $1,200 per month = $14,400 per annum = $72,000 per 5 year contract
Proposed new payment of $10,000 per annum = $50,000 per 5 year contract
Gain to SIA/Loss to SPF captain, post new arrangement = $22,000
Once again, another “Singapore Style” solution!
Happy flying guys!
Last edited by highcirrus; 10th Sep 2004 at 09:03.
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I’d guess that the ex-pats are being screwed here, which, as LKY needs to continually attract fodder to man his expanding SIA fleets, is probably not what he had in mind when he called Alpa-s in for his friendly discussion on the CA renewal, some months ago.
There will be few ex-pat B744 captains at the top of the salary range, so any secret deal to keep high increment captains on the same salary levels will predominantly benefit non ex-pats.
Similarly, bogus signing bonuses and declining rent/school fee allowances can hardly be calculated to bring in the “ang mohs” to make up the numbers. I also know for a fact that a group of very suitable potential SIA recruits have been turned away by the unsavoury circumstances surrounding recent cancellation of the Provident Fund. I believe it's something to do with SIA loosing any last crumb of credibility it might ever have had.
There will be few ex-pat B744 captains at the top of the salary range, so any secret deal to keep high increment captains on the same salary levels will predominantly benefit non ex-pats.
Similarly, bogus signing bonuses and declining rent/school fee allowances can hardly be calculated to bring in the “ang mohs” to make up the numbers. I also know for a fact that a group of very suitable potential SIA recruits have been turned away by the unsavoury circumstances surrounding recent cancellation of the Provident Fund. I believe it's something to do with SIA loosing any last crumb of credibility it might ever have had.
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MM LEE ON WAGE ACCORD
Straits Times, 16 Sept 2004
Pilots' pay deal just the start of more changes.
Mr Lee says global competition is forcing the pace of change and SIA staff must be prepared to make more adjustments.
By Rebecca Lee
THE wage deal reached by Singapore Airlines (SIA) and its pilots is only the beginning of more adjustments that SIA staff will have to make to ensure the national carrier stays on top.
Minister Mentor Lee Kuan Yew made this point to SIA pilots in a letter to Air Line Pilots Association Singapore (Alpa-S) president Mok Hin Choon.
Mr Lee said he was making the letter public 'in order that all unions and managements will bear in mind that Singapore's economy is undergoing major restructuring pressured by powerful competitive forces of the global market'.
Stressing the need for Alpa-S and SIA management to work together, Mr Lee said the Government could not allow any union to 'derail' Changi's air hub ambition and unscramble what Singapore had achieved.
'We have evolved a harmonious and productive labour-management relationship.
'It is these special, out-of-the-ordinary principles and practices that have enabled Singaporeans to achieve First World standards,' Mr Lee said in his letter dated Monday.
He was replying to Capt Mok who wrote him on Sept 9, informing him that the pilots had reached an in-principle agreement with SIA on its new collective agreement.
Captain Mok thanked Mr Lee for his 'kind assistance and wise counsel' and said Alpa-S was 'committed to the healing process' that it started when his executive council took office last December.
The union's new wage pact, which makes more of pilots' pay variable, came after months of private and public wrangling, prompting Mr Lee to step in personally. He had meetings with both Alpa-S and management and urged both sides to start anew and rebuild trust.
In his letter to Capt Mok, MM Lee said he was 'relieved' to hear that they had sealed a deal.
He said that the pact was only the beginning of a series of adjustments that SIA and its employees, including the pilots, must make for the airline to remain competitive.
He noted that as the aviation landscape undergoes radical change, with the entry of low-cost carriers and new long-haul aircraft, SIA and terminal operators Singapore Airport Terminal Services and Changi International Airport Services must relook the way they operate.
MM Lee laid down three principles on which SIA must operate to remain competitive:
• First, SIA must pay competitive wages to attract good pilots and other staff. But it should not set benchmarks 'mechanically' based on other airlines without regard to Singapore's 'special limitations'.
• Second, SIA must loosen work rules so that pilots can be rostered to fly more and earn more in productivity pay to raise their total income.
• Third, SIA must have flexibility in recruitment practices. In a global market where pay and allowances of foreign pilots change frequently, SIA cannot be locked into collective agreements which are fixed for three years.
'In short, we must remove all uncompetitive rigidities,' he said, lest SIA went the way of US airlines, many of which have filed for bankruptcy protection.
MM Lee also urged Alpa-S to abide by National Wages Council recommendations, which are arrived at through tripartite consensus, and follow precedents set by other unions. These have created a climate for business to thrive, benefiting workers and employers.
He pointed out that by not being affiliated to National Trades Union Congress, the umbrella body for most of Singapore's unions, Alpa-S 'suffers from a disconnect to the rest of Singapore'.
'Because pilots travel widely, rubbing shoulders with pilots of airlines of major countries can subconsciously lead them to assume that they should be similarly treated.
'But this is not sustainable in the Singapore context,' he said.
Mr Lee also cited port operator PSA as an example of how management and union fought back to retain its hub status after losing two major shipping lines.
Turning to the broader picture, MM Lee noted Singapore's unique situation. It is competing in the first league but its small population and area, and lack of natural assets qualify it for only a place in the third league.
'To remain in the First World we have to observe the principles and practices that have enabled us to climb out of the Third World.
'We have to be hard-headed, realistic, pragmatic and ingenious to make up for our lack of size and weight.'
He noted how several up-and-coming airlines were working hard to achieve SIA's standards, but with a much lower wage and other costs base. They were also hiring retired SIA staff so that they could absorb SIA's culture and compete.
'SIA has to work on a different formula: the lowest fixed component in wages and the highest in profit-sharing allowances and bonuses.'
Mr Lee also noted how Singapore was now at a turning point in its economic development, with countries such as China, India, Malaysia, Thailand and Indonesia having learnt the lessons of their past policies. Many, including faraway Dubai, had studied Singapore's success and were adopting many of its practices, such as having world class infrastructure and raising educational levels.
He said for Singapore to stay ahead: 'We must have the will to devise ways and means to compete and win. And win for our workers as much as for our investors, foreign and local.'
Pilots' pay deal just the start of more changes.
Mr Lee says global competition is forcing the pace of change and SIA staff must be prepared to make more adjustments.
By Rebecca Lee
THE wage deal reached by Singapore Airlines (SIA) and its pilots is only the beginning of more adjustments that SIA staff will have to make to ensure the national carrier stays on top.
Minister Mentor Lee Kuan Yew made this point to SIA pilots in a letter to Air Line Pilots Association Singapore (Alpa-S) president Mok Hin Choon.
Mr Lee said he was making the letter public 'in order that all unions and managements will bear in mind that Singapore's economy is undergoing major restructuring pressured by powerful competitive forces of the global market'.
Stressing the need for Alpa-S and SIA management to work together, Mr Lee said the Government could not allow any union to 'derail' Changi's air hub ambition and unscramble what Singapore had achieved.
'We have evolved a harmonious and productive labour-management relationship.
'It is these special, out-of-the-ordinary principles and practices that have enabled Singaporeans to achieve First World standards,' Mr Lee said in his letter dated Monday.
He was replying to Capt Mok who wrote him on Sept 9, informing him that the pilots had reached an in-principle agreement with SIA on its new collective agreement.
Captain Mok thanked Mr Lee for his 'kind assistance and wise counsel' and said Alpa-S was 'committed to the healing process' that it started when his executive council took office last December.
The union's new wage pact, which makes more of pilots' pay variable, came after months of private and public wrangling, prompting Mr Lee to step in personally. He had meetings with both Alpa-S and management and urged both sides to start anew and rebuild trust.
In his letter to Capt Mok, MM Lee said he was 'relieved' to hear that they had sealed a deal.
He said that the pact was only the beginning of a series of adjustments that SIA and its employees, including the pilots, must make for the airline to remain competitive.
He noted that as the aviation landscape undergoes radical change, with the entry of low-cost carriers and new long-haul aircraft, SIA and terminal operators Singapore Airport Terminal Services and Changi International Airport Services must relook the way they operate.
MM Lee laid down three principles on which SIA must operate to remain competitive:
• First, SIA must pay competitive wages to attract good pilots and other staff. But it should not set benchmarks 'mechanically' based on other airlines without regard to Singapore's 'special limitations'.
• Second, SIA must loosen work rules so that pilots can be rostered to fly more and earn more in productivity pay to raise their total income.
• Third, SIA must have flexibility in recruitment practices. In a global market where pay and allowances of foreign pilots change frequently, SIA cannot be locked into collective agreements which are fixed for three years.
'In short, we must remove all uncompetitive rigidities,' he said, lest SIA went the way of US airlines, many of which have filed for bankruptcy protection.
MM Lee also urged Alpa-S to abide by National Wages Council recommendations, which are arrived at through tripartite consensus, and follow precedents set by other unions. These have created a climate for business to thrive, benefiting workers and employers.
He pointed out that by not being affiliated to National Trades Union Congress, the umbrella body for most of Singapore's unions, Alpa-S 'suffers from a disconnect to the rest of Singapore'.
'Because pilots travel widely, rubbing shoulders with pilots of airlines of major countries can subconsciously lead them to assume that they should be similarly treated.
'But this is not sustainable in the Singapore context,' he said.
Mr Lee also cited port operator PSA as an example of how management and union fought back to retain its hub status after losing two major shipping lines.
Turning to the broader picture, MM Lee noted Singapore's unique situation. It is competing in the first league but its small population and area, and lack of natural assets qualify it for only a place in the third league.
'To remain in the First World we have to observe the principles and practices that have enabled us to climb out of the Third World.
'We have to be hard-headed, realistic, pragmatic and ingenious to make up for our lack of size and weight.'
He noted how several up-and-coming airlines were working hard to achieve SIA's standards, but with a much lower wage and other costs base. They were also hiring retired SIA staff so that they could absorb SIA's culture and compete.
'SIA has to work on a different formula: the lowest fixed component in wages and the highest in profit-sharing allowances and bonuses.'
Mr Lee also noted how Singapore was now at a turning point in its economic development, with countries such as China, India, Malaysia, Thailand and Indonesia having learnt the lessons of their past policies. Many, including faraway Dubai, had studied Singapore's success and were adopting many of its practices, such as having world class infrastructure and raising educational levels.
He said for Singapore to stay ahead: 'We must have the will to devise ways and means to compete and win. And win for our workers as much as for our investors, foreign and local.'