SIA introduces voluntary release scheme for cabin crew

Singapore Airlines (SIA) is offering its cabin crew a voluntary release scheme (VRS) as expectations of a slow recovery in travel mount.

An SIA spokesperson said: "This offers our cabin crew an option for an early release or retirement with payouts and benefits."

Application for the scheme is open between now and end August. The applications are subject to approval, with cabin crew who apply for the scheme to be notified of the outcome of their application by mid-September. Trainee crew, however, are not eligible.

This comes as airlines around the world reel from the impact of the Covid-19 pandemic. According to the International Air Transport Association, international travel may not return to pre-Covid levels until 2024.

Aside from merits of the applicant, SIA will also take into account operational requirements when reviewing applications.

With border closures still largely intact and travel demand on the skids, the VRS is seen as one way of helping the airline group deal with surplus cabin crew. The SIA Group employs nearly 11,000 cabin crew across its different airlines - SIA, regional wing SilkAir and budget arm Scoot. Cabin crew - already seeing a decline in variable income from the loss of flying hours following crippling capacity cuts - had recently agreed to a monthly salary cut, which was implemented from Aug 1. The SIA spokesperson added: "We continue to work closely with our unions on the way forward where staff measures are concerned. We will announce any additional measures, if necessary, at the appropriate time."

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The Air Line Pilots Association - Singapore (Alpa-S) and Air-Transport Executive Staff Union (AESU) have also agreed to cost cutting measures. Alpa-S last week signed a memorandum of agreement under which pilots will take a 10 per cent cut in their basic salary and an adjustment to their compulsory no pay leave scheme, The Business Times reported on Tuesday.

In addition, SIA has started offering a voluntary early-retirement scheme for all ground staff and pilots, which comes with monetary payouts and retirement travel benefits.

Shares of SIA closed eight Singapore cents higher at S$3.68 on Wednesday.