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More pay cuts at SATS amid Covid-19; sees substantial impact to Q4, FY results
SATS on Monday announced a 15 per cent pay cut for its president and chief executive Alex Hungate amid a series of further cuts which took effect from March 1. Non-executive directors' fees were also reduced by 15 per cent, executive vice-presidents and senior vice-presidents saw a 12 per cent pay cut, while vice-presidents took a 10 per cent cut.
In addition, starting April 1, managers to assistant vice-presidents will take a 5 per cent pay cut.
The airport and food services provider had earlier announced that the management team, comprising vice-presidents and above, were taking a 10 per cent pay cut, as part of cost-saving measures to save jobs.
In its latest announcement, SATS warned that the novel coronavirus situation is expected to "substantially and adversely" affect profitability for its fourth quarter and full-year ending March 31, 2020, when compared with a year ago.
There has also been a reduction in revenue for SATS across all markets. The rapid spread of the Covid-19 virus to Europe and America over the past week had led to a significant drop in demand for air travel globally, SATS noted.
More details of its financial performance will be furnished when the unaudited financial statements for the periods mentioned are complete and available.
Despite a negative hit to its short-term earnings impacted by the Covid-19 virus outbreak, SATS said it is in a strong position to weather the disruptions. It added that it was "looking out for opportunities" in this crisis.
On March 2, the mainboard-listed firm said it acquired UK-based aviation food solutions company Monty's Bakehouse UK for £26.7 million (S$48.4 million). Monty's Bakehouse produces sustainably packaged, hand-held snacks for premium airlines and other customer segments across the world.
SATS shares ended S$0.02 or 0.5 per cent lower at S$4.03 on Friday.