SIA offers cabin crew voluntary release scheme
Singapore
GRAPPLING with a dearth of travel demand, Singapore Airlines (SIA) is offering its cabin crew a voluntary release scheme (VRS) as it seeks to contain costs.
A spokesperson for SIA highlighted that the scheme is a result of the impact of the pandemic on the airline group, as well as expectations of a slow recovery in international air travel. The 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. 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 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.
According to the Singapore Airlines Staff Union (SIASU), some 4,000 of the over 9,050 SIA and SilkAir cabin crew that SIASU represents have applied for a separate voluntary no pay leave scheme that was introduced by the group in March.
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."
SIA, which reported a Q1 net loss of S$1.12 billion, is operating just 7 per cent of its original capacity this month and has said that it expects to operate less than 50 per cent of its capacity by the end of March next year.
With the International Air Transport Association projecting that air travel demand may not return to pre-Covid levels until 2024, airlines around the world are struggling. Like other carriers, the SIA group could have surplus aircraft for the near to medium term, which suggests surplus pilots and crew.
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 which will see pilots taking 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 pay outs and retirement travel benefits.
Shares of SIA closed eight cents higher at S$3.68 on Wednesday.
