Singapore Airlines Cut Flights
Recently Singapore Airlines Ltd. revealed it new plans to cut flights and ground over a dozen planes as less passengers travel amid the current global economic slowdown. The carrier announced it is going to cut capacity by 11% between April and March 2010 from the last twelve months and decommission 17 aircraft after air cargo shipments fell 20%. In a statement on Monday the company said “The drop in air transportation has been sharp and swift,” “We have to face the reality that 2009 is going to be a very difficult year.” The company said last month that it planned to reduce flights to the America, Europe and Asia as demand dried up. Last week they said its October-December profit fell 43% as it flew 4.2% fewer passengers.
On the other hand, last Monday the authority met with employee unions to discuss voluntary leave without pay, voluntary early retirement and shorter work months. the authority said managers will cut the salaries first if needed. “We will contemplate retrenchment only as a last resort, but we do not have the luxury of time,” the company said. “We need to agree and act on some measures quickly so that we can push back the point of retrenchment as far as possible.”