Singapore Airlines expected to announce job cuts

Airline Industry Information, June 16, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

Singapore Airlines is expected to announce nearly 600 job cuts due to a decline in passenger demand prompted by the outbreak of Severe Acute Respiratory Syndrome (SARS).

The employment cuts will affect inflight crew at the carrier, and will include 75 inflight supervisors and about 500 flight attendants.

A drop in demand as well as high staff costs have prompted the carrier to cut its 14,500-strong workforce. Staff costs reportedly totalled SGD2.24bn or 16% of total costs in the last financial year.

According to Reuters, the airline faces further difficulties after its 1,600 pilots rejected deep salary cuts and wage reforms.

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