Cuts will be made on Singapore Airlines and its SilkAir and Scoot units. Discussions are ongoing with unions and agreements will be finaled as soon as possible, the airline said Thursday night.
“Having to abandon our valued and committed workers is the maximum complicated and distressing resolution I’ve had to take in my 30 years with SIA,” CHIEF Choon Phong Goh said in the statement. “The coming weeks will be some of the most difficult in the history of the SIA group. “
This resolution shows that even the world’s major airlines escape the biggest currency crisis in industry history after the pandemic destroyed foreign air travel. The International Air Transport Association does not expect passenger traffic to return to pre-pandemic levels until 2024. that is, vulnerable because it does not have an internal market to withdraw from.
“When the war against Covid-19 began, none of us could have predicted that it would have a devastating effect on the entire aviation industry,” Choon said. “Eight months later, the number of carriers that collapsed continues to increase. It is not yet clear who will do it despite all this crisis. “
Contract paused
Task losses occur when the airline raised about S$11 billion ($8 billion) through loans and a rights factor in June, and gained assistance from a government employment program. The Ministry of Finance said it spent about $15 billion in July to help the city – state-owned enterprises pay staff.
Unlike many of its peers, Singapore Airlines first controlled task cuts, some staff members were reassigned to paintings in Singapore’s hospitals, social facilities and transport media paintings.
He also imposed a hiring freeze in March and proposed early retirements and voluntary layoffs that eliminated some 1,900 positions, so discounts on the organization have been reduced to about 2,400, the airline reported on Thursday.
Singapore Airlines expects to operate at less than 50% of its capacity by the end of this fiscal year. Job cuts account for approximately 15. 6% of the group’s total in 2019, according to James Teo, an analyst at Bloomberg Intelligence in Singapore.
“I think those discounts are due and that the delay is probably due to the time required to end voluntary departures,” Teo said. It is vital for him to lengthen his staff well, especially his flight crew. “
The airline suffered a record operating loss of S$1 billion from the first quarter through June, and paid passengers-kilometers fell by more than 99%. Virus problems are exacerbated through fuel canopy losses, with up to 79% of your desires stagnant between $71. and $74 a barrel of kerosene and $58 to $62 a Brent, Teo wrote the previous Thursday, before the task cuts were announced.
Overall pain
Few others in the aviation industry have escaped the coronavirus, along with British Airways, Deutsche Lufthansa AG, Emirates and Qantas Airways Ltd. , who announced thousands of pay-free layoffs and licensing programs. Many more are expected in the United States after the lifting of a moratorium. in task cuts, a condition for a $50 billion government bailout, by the end of September.
Since January, airlines around the world have reported that up to 400,000 more people will be fired or licensed, based on knowledge collected through Bloomberg. In North America, some 130,000 jobs are expected to be lost. said last week that it would cut 16370 jobs in October as it would reduce its operations, in addition to the 19,000 discounts expected through American Airlines Group Inc.
Singapore Airlines is reviewing the length of its fleet and network and in July agreed with Airbus SE to postpone deliveries of some aircraft and reschedule some payments, while holding talks with Boeing Co.
Singapore Airlines shares closed with a 1. 1% fall on Thursday before the announcement, bringing falls from January to 44. 4%.
This story was published from a firm thread without converting the text. Only the name has been changed.
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