Singapore Airlines has told its 76 expatriate pilots that they will have
to leave before their three-year contracts expire.
The move is the latest in a slew
of measures to trim excess manpower amid a business slowdown, especially in the
long-haul premium market.
SIA said yesterday that the
"difficult decision" to release the captains by the end of June was
due to slower-than-anticipated growth after the last global financial crisis of
2009/2010.
Unlike other foreigners who are
part of the airline's pool of more than 2,400 pilots, the 76 captains who have
been asked to go are on expatriate terms.
This means that on top of their
salary and flying allowances, they are entitled to housing and other subsidies
that total about S$5,000 (US$4,000) a month.
The pilots also receive a S$30,000
(US$24,300) gratuity at the end of their contracts.
With the early termination, they
will receive a pro-rated amount, The Straits Times understands.
SIA spokesman Nicholas Ionides
said without revealing actual numbers: "We will still have a surplus after
this but the number will be reduced."
Captain Mok Hin Choon, president
of the Air Line Pilots Association of Singapore, said the union was informed of
the company's decision just yesterday afternoon.
"The last we were told was
that the contracts would not be renewed upon expiry so this has come as a
sudden surprise," he said.
With the excess manpower still an
issue, the worry is that more measures may be taken to further address the
situation, he said.
So far, SIA has frozen cadet
pilot recruitment, cut flying hours for some pilots and asked pilots to
volunteer for unpaid leave.
To deal with the current
slowdown, which caused July-to-September profits last year to dip 54 per cent
to S$90 million (US$73 million) from the same period in 2011, SIA is expanding
the roles played by its regional airline SilkAir and low-cost carrier Scoot.
This is to take advantage of
strong growth in regional and low-cost traffic.
The union has asked the airline
to consider transferring pilots to the other arms so that they can return to
the parent carrier when needed, instead of letting them go.
SIA has said no on the grounds
that both Scoot and SilkAir are independently operated and managed.
Mok, who spoke to The Straits
Times shortly after he met the affected captains, said: "This is a sad
day."
Karamjit Kaur
The Straits Times
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment