The Singapore Airlines Group (SIA) has announced
that it needs to cut around 4,300 positions across Singapore
Airlines, SilkAir and Scoot in Singapore and its overseas
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.
The SIA Group expects to
operate under 50% of its capacity at the end of financial year
2020/21 versus pre-COVID19 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.
The loss of 4,300 jobs from Singapore Airlines, SilkAir and
Scoot 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.
Singapore Airlines Chief Executive Officer, Goh
Choon Phong, said, "When the battle against COVID19 began early
this year, none of us could have predicted its devastating impact
on the global aviation industry. From the outset, our priorities
were to ensure our survival and save as many jobs as possible.
Given that the road to recovery will be long and fraught with
uncertainty, we have to unfortunately implement involuntary staff
reduction measures. Having to let go of our valuable and dedicated
people is the hardest and most agonising decision that I have had
to make in my 30 years with SIA. This is not a reflection of the
strengths and capabilities of those who will be affected, but the
result of an unprecedented global crisis that has engulfed the
airline industry. The next few weeks will be some of the toughest
in the history of the SIA Group as some of our friends and
colleagues leave the company. We will conduct this process in a
fair and respectful manner, and do our best to ensure that they
receive all the necessary support during this very trying time."
To date, the SIA Group has raised $11 billion through
a rights issue, secured
financing, and additional lines of credit. The company continues to explore
other sources of financing and has significantly reduced
capital and operating expenditure since the onset of COVID19 by
deferring non-critical projects, and by working with suppliers and
partners to reduce costs, reschedule payments, and adjust aircraft
SIA reported a 99.5% decline in passenger
carriage in the first quarter of FY20/21, and even today the SIA Group
operates only 8% of its capacity when compared to pre-COVID19 levels.
This is expected to increase to less than 50% at the end of the