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SINGAPORE, Sept. 11 (The Straits Times / ANN): Singapore Airlines Group (SIA) is cutting jobs amid the fallout from Covid-19.
Staff were made aware of this during a virtual town hall on Thursday (September 10).
The airline said in a statement: “The Singapore Airlines Group (SIA) announced today the difficult decision to cut around 4,300 positions across all of its airlines. After taking into account the hiring freeze, wear and tear and the adoption of plans voluntary departure, the The potential number of affected employees will be reduced to about 2,400 in Singapore and at overseas stations.
“This decision was made in light of the long road to recovery of the global airline industry due to the debilitating impact of the Covid-19 pandemic and the urgent need for the group’s airlines to adapt to an uncertain future.”
He said the Group expects to operate at less than 50 percent of its capacity by the end of the financial year in March next year, compared to levels before the Covid-19 pandemic.
“Compared to most of the world’s major airlines, the SIA Group is in an even more vulnerable position, as it does not have a domestic market that is the first to see a recovery,” added SIA.
“To remain viable in this uncertain landscape, the Group’s airlines will operate a smaller fleet for a reduced network compared to their pre-Covid operations in the coming years.”
In a memo to staff, SIA CEO Goh Choon Phong said it was a “painfully difficult decision” to downsize, the most difficult he has had to make in his 30 years at SIA. Mr. Goh said that SIA is working with Singapore-based unions to finalize arrangements for affected staff and minimize stress and anxiety for them.
“For our affected colleagues, please know that this is not a reflection of your individual strengths and capabilities,” he said.
“It is the result of an unprecedented travel paralysis caused by a global pandemic. Please also be assured that we will conduct the process fairly and respectfully, and will do our best to ensure that you receive all the necessary support during this difficult time. “
He urged the staff to come together to overcome this difficult period.
The layoffs had been widely anticipated and came as international travel continues to stall, and governments impose strict border controls to contain the pandemic.
While there has been a reopening in recent weeks for essential commercial and official travel between Singapore and select countries, including China, the number of passengers and flights is a small fraction of the days leading up to the pandemic.
The International Air Transport Association has said that passenger demand for air travel is not expected to return to pre-crisis levels until 2024.
In July, SIA had reported a net loss of $ 1.12 billion in the quarter ending June 30, its biggest quarterly loss on record, as demand plummeted amid travel restrictions caused by the coronavirus pandemic.
The group’s revenue fell 79.3 percent to $ 851 million year-over-year, while expenses fell 51.6 percent to $ 1.89 billion, the company said at the time.
Passenger transport fell at SIA, SilkAir and Scoot, resulting in a 99.5 percent decrease for the company.
At the height of the severe acute respiratory syndrome outbreak in 2003, which was less devastating than the current pandemic, SIA laid off several hundred employees, including pilots and cabin crew.
In a Facebook post on Thursday, Labor Chief Ng Chee Meng said: “While the news that our local airlines are the right size is not a shock these days, we cannot help but feel a deep sense of loss and sadness.
“I know it is difficult for everyone concerned. But let’s cheer up, keep the faith, and keep supporting each other. Little by little, we will come out stronger together. “
The Under Secretary General of the National Trade Union Congress, Cham Hui Fong, said that the Singapore Airlines Personnel Union and the Scoot Personnel Union have been working closely with the SIA Group management over the past six months on various measures to mitigate downsizing.
“Unfortunately, these efforts were insufficient to completely prevent it and overcome the severity and prolonged impact of the Covid-19 pandemic,” he said.
“We will continue to work with the SIA Group on training opportunities for its remaining workforce, as well as providing assistance to those whose incomes have been affected, so that they can get through this difficult period and be well positioned for when the market recovers. “- The Straits Times / Asian News Network
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