SINGAPORE – Singapore Airlines will eliminate 4,300 tasks, adding 2,400 layoffs, due to the prolonged decrease in the call resulting from the coronavirus pandemic, the company said Thursday, preparing the newest global airline to announce primary task cuts.
In addition to the layoffs, the company will cut 1,900 jobs by freezing hiring, attrition and voluntary retirement systems on its 3 airlines: Singapore Airlines, the SilkAir short-haul logo and the cheap Scoot logo.
The corporate had an average of 27,619 workers in the year ended March 31, according to the corporate’s annual report. The removal of 4,300 positions represents about 16% of the company’s payroll.
Singapore Airlines did specify which departments and positions would be affected, but said layoffs would occur in Singapore and abroad.
“This resolution was taken in compliance with the long road in the recovery of the global airline industry, due to the debilitating effect of the COVID-19 pandemic and the urgent need for the group’s airlines to adapt to a dubious future. “Singapore Airlines said Thursday, noting that it expects to continue operating at less than 50% of its capacity in March next year.
Based in the city-state, Singapore Airlines does not have a domestic market to retreat to, putting it in a complicated position, even as countries around the world begin to alleviate strict blockades against coronaviruses.
The company reported a loss of S$1. 12 billion ($810 million) for the April-June era, a record quarterly loss, with revenues below 79% from last year.
“Since the road to recovery will be long and full of uncertainty, unfortunately we want to put in place measures to accidentally reduce staff,” CHIEF Goh Choon Phong said in the statement. The staff involved will leave in the coming weeks.
The corporation had implemented other measures to lower prices and liquidity, adding delays in negotiating aircraft deliveries and payment schedules with aircraft manufacturers, and increasing budget by selling new shares and convertible bonds.
But the air has taken time to recover. In July, the International Air Travel Association predicted that global air demand would not return to 2019 until 2024. Previously, he had predicted that the uptick would occur until 2023. This year’s passengers are expected to be 55% less than in 2019.
Singapore Airlines’ staff reduction is probably one of the largest for an Asian airline. IndiGo, India’s largest airline in terms of market share, operating through InterGlobe Aviation, announced that it would fire 10% of its workforce from approximately another 27,000 people. Philippine Airlines has reduced its workforce through another three hundred people and cheap airline Cebu Air has laid off more than 800 seats. The liquidation of Thailand’s cheap airline NokScoot has left more than 400 people unemployed. Many other airlines are looking for layoffs by providing workers with unpaid leave.
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