SINGAPORE - Singapore Airlines Ltd, the world's second-largest
carrier by market value, said on Friday it has asked its pilots to volunteer
for a no-pay leave of up to two years as the industry was hit by weak demand
and soaring jet fuel prices.
The move comes on the heels of a 53 per cent plunge in third-quarter
net profits for the Singapore flag-carrier, which recently also announced a 20
per cent capacity cut for its cargo operation and higher fuel surcharges.
The offer is open to senior first officers, first officers, second
officers and cadet pilots, for durations of between one week and two years to
address a surplus of pilots, Singapore Air spokesman Nicholas Ionides said in
an email.
"The global financial crisis in 2009-10 was a factor and resulted
in some excess capacity at the time. Growth was also slower than anticipated
after that," Ionides said, adding that pilots opting for no-pay leave can
work for other carriers during the period subject to a written approval from
Singapore Airlines.
The carrier has no plans to make the scheme compulsory at this point
and sees the situation as temporary, he said.
Singapore Air, whose primary customers are business travelers, has been
badly hit by a slowdown in corporate travel as major companies, mainly
financial firms, cut costs.
The global airlines industry has been struggling to pass on the higher
cost of fuels to customers as demand for business and leisure travel dwindled
due to the global economic slowdown.
The International Air Transport Association cut its forecast for
airline industry profits by a quarter to US$3.5 billion (S$4.3 billion) for
2012 and warned the industry could plunge to an US$8.3-billion loss if Europe's
debt problems trigger another banking crisis.
AFP
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