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SQ proposes unpaid leave for cargo pilots

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Singapore Airlines proposes unpaid leave for cargo pilots

 

5 hours ago

 

SINGAPORE (AFP) — Singapore Airlines (SIA) is discussing with cargo pilots proposals for them to take leave with no pay after the global economic slump hammered freight demand, a spokesman said Wednesday.

 

Stephen Forshaw said the unpaid leave periods would be for up to 30 months and are meant to deal with an expected surplus of pilots next year and beyond, while the company sidelines aircraft in the face of falling demand.

 

"The outlook for the freight industry is weak. Around the world, shipping companies are parking vessels and all-cargo airlines are being severely affected," he said in a statement.

 

"Going forward, SIA Cargo needs to do all it can to contain costs. In doing so, the company will work cooperatively with its staff and unions to deal with the issues that arise, with a focus on steps that can be taken to avoid retrenchments, which will only be considered as a matter of last resort."

 

SIA said it has 300 cargo pilots and 2,200 pilots for its passenger fleet.

 

There are no discussions for unpaid leave with passenger pilots, according to Forshaw.

"However, we will respond to the changing demand climate quickly, and if this means we identify surplus staff, we will work cooperatively with our staff and unions to manage the issues," he added.

 

SIA filled 60.3 percent of available cargo space in November, down from 64.5 percent in the same month last year, according to the latest available data.

 

Aviation industry group the International Air Transport Association (IATA) said Tuesday that global freight fell 13.5 percent in November from the year before, its biggest decline since 2001 in the aftermath of the September 11 attacks on the United States.

 

Freight traffic shrank a sharper 16.9 percent for airlines in the Asia-Pacific, which account for almost half of all air cargo, IATA said.

 

"As freight accounts for a larger percentage of revenues for the Asia-Pacific carriers, fourth-quarter profits for the region's carriers will be disproportionately (and negatively) impacted by the downturn in the global air freight market," IATA added.

 

The association's director general and president, Giovanni Bisignani, said the sharp drop in international air cargo was "shocking."

 

"As air cargo handles 35 percent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown," he said.

 

"The industry is now shrinking by all measures."

 

SIA said in November that net profit for the fiscal second quarter ending September fell 36.2 percent from the previous year to 324 million Singapore dollars (225 million US).

 

SIA shares finished eight cents lower at 11.26 on Wednesday, the last trading day of 2008. This compared with their closing price of 17.20 on the first trading day of 2008.

 

http://www.google.com/hostednews/afp/artic...5xwn-3hJPEeha6A

 

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I think it is the right decision.

 

Given the choice between unpaid leave and heavy staff lay-offs, I think most would willingly agree more to the first option.

 

It does present its own problems though.

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I thought only the factories here practice such thing... Now even SIA gonna do that too...

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This is truly a global economic crisis of unimaginable proportions!! I just hope recovery happens faster than I think.

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I thought only the factories here practice such thing... Now even SIA gonna do that too...

Singapore Airlines is not God, they aren't immune to the market driven slump as proven last by the SARS pandemic. It is only a matter of time they get hit and how stable is your foundation will buy you time in relative terms.

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:blink:

 

Is MW member Colin Kok also affected ? :huh:

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