SIA says voluntary no-pay leave move makes it more nimble

Singapore

SINGAPORE Airlines (SIA)'s decision to ask selected staff to go on voluntary no-pay leave (VNPL) was taken to "better manage crew resources and operational requirements" as it enters a period of temporary manpower surplus at specific ranks.

More than 400 SIA cabin crew have applied for no-pay leave, with durations ranging from five days to a month, The Straits Times reported on Saturday.

An SIA company official told BT in an email that the new approach would ensure that the cabin crew division is "more flexible and nimble in managing crew resources". He added that the company intended to offer such schemes "from time to time".

In a note to employees sent earlier, the company explained that "short-term periods of manpower surplus or deficits" are not unusual "due to the nature of business".

The notice announced that the scheme would only apply for the ranks of chief steward/stewardess and flight steward/stewardess.

The ranks of leading steward/stewardess and in-flight manager will not be affected, and are not entitled to take up this offer.

SIA also has in place a leave buy-back scheme, another measure to achieve optimal use of crew resources.

This scheme is targeted for periods of temporary "deficit of cabin crew", where SIA will "offer to buy back cabin crew's leave days during that period". In short, crew will go back to flying instead of going on leave. But this is "entirely voluntary", an SIA official added.

K Ajith, director of Asia transport research at UOB Kay Hian Pte Ltd, said he was not surprised, but added that the cost savings were not likely to be significant. And although it is operating in a highly competitive environment, Mr Ajith does not see the adjustments in manpower utilisation as a sign of SIA going through tough times.

"They're not retrenching," he noted.

"As and when the operating environment improves, and there is greater demand, they can recall the cabin crew back into service. I think they are basically trying to optimise cost, versus revenue. It may also be an attempt to shift capacity to its subsidiaries where there is rising demand for cabin crew."

But whether or not SIA's staff will take up such an offer remains uncertain due to different compensation and service structures within the group's subsidiaries.

The scheduled VNPL scheme will only be applicable for the specified three months.

One flight stewardess told BT: "My friends are thinking of taking a week off to go back home or travel."

The scheme will start in September, but those in the affected cabin crew are allowed to apply for their leave for that upcoming period now, subject to approval by their planning department.