Singapore Airlines to cut around 4,300 positions across its airlines
Topics: SINGAPORE AIRLINES
After taking into account a recruitment freeze, natural attrition, and the take up of voluntary departure schemes, the potential number of staff impacted will be reduced to about 2,400 in Singapore and in overseas stations.
This decision was taken in light of the long road to recovery for the global airline industry due to the debilitating impact of the coronavirus pandemic, and the urgent need for the Group s airlines to adapt to an uncertain future.
As previously indicated, the Group expects to operate under 50% of its capacity at the end of financial year 2020/21 versus pre-coronavirus levels. Industry groups have also forecast that passenger traffic will not return to previous levels until around 2024.
Relative to most major airlines in the world, the SIA Group is in an even more vulnerable position as it does not have a domestic market that will be the first to see a recovery.
In order to remain viable in this uncertain landscape, the Group's airlines will operate a smaller fleet for a reduced network compared to their preCovid operations in the coming years.
To prepare for this future, the Group needs to cut around 4,300 positions across Singapore Airlines, SilkAir and Scoot.
This has been mitigated by a recruitment freeze that was implemented in March 2020, open vacancies that were not filled, an early retirement scheme for ground staff and pilots, and a voluntary release scheme for cabin crew.
Collectively, these measures have allowed the Group to eliminate some 1,900 positions.
As a result, the potential job cuts across the Group may be reduced to around 2,400 in Singapore and across SIA s overseas stations. ■