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Singapore Airlines business review contemplates head count reductions
SINGAPORE Airlines says it is likely to make job cuts as part of a business review to revive earnings following an unexpected quarterly loss.
The airline's staff is aware headcount reduction is possible under the process, chief executive officer Goh Choon Phong told reporters at the annual meeting of the International Air Transport Association in Cancun, Mexico.
The group, including affiliates and units, employed an average 24,350 workers at the end of March 2016.
Some jobs may become "irrelevant," while some workers may need new skills for different tasks, Mr Goh said, adding it is too early to provide numbers. The review process that covers the carrier's fleet and network started more than six months ago, and Singapore Air has hired external advisers for help, he said.
Singapore Air, which reported its first quarterly loss爄n five years, is under pressure to reduce costs and revamp its business amid intense competition from regional discount carriers and Middle-Eastern rivals.
Predicting a challenging 2017, with passenger and cargo yields - a key measure of profitability in the industry - under stress, Singapore Air said in May that it's set up a dedicated transformation office to conduct a "wide-ranging review" to better position the group for long-term, sustainable growth.
The net loss in the quarter through March was S$138.3 million (US$100 million), the first since the same period in 2012. The company took a provision of S$132 million in the period for competition-related matters.
The airline's staff is aware headcount reduction is possible under the process, chief executive officer Goh Choon Phong told reporters at the annual meeting of the International Air Transport Association in Cancun, Mexico.
The group, including affiliates and units, employed an average 24,350 workers at the end of March 2016.
Some jobs may become "irrelevant," while some workers may need new skills for different tasks, Mr Goh said, adding it is too early to provide numbers. The review process that covers the carrier's fleet and network started more than six months ago, and Singapore Air has hired external advisers for help, he said.
Singapore Air, which reported its first quarterly loss爄n five years, is under pressure to reduce costs and revamp its business amid intense competition from regional discount carriers and Middle-Eastern rivals.
Predicting a challenging 2017, with passenger and cargo yields - a key measure of profitability in the industry - under stress, Singapore Air said in May that it's set up a dedicated transformation office to conduct a "wide-ranging review" to better position the group for long-term, sustainable growth.
The net loss in the quarter through March was S$138.3 million (US$100 million), the first since the same period in 2012. The company took a provision of S$132 million in the period for competition-related matters.
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