Singapore Airlines (SQ, Singapore Changi) is currently carrying out the turnaround plan created by its dedicated Transformation Office, as it aims to re-establish itself as a market leader after a surprise 1Q17 loss. Reuters has seen an internal newsletter which shows the carrier is committed to 56 initiatives to reduce costs and improve efficiency across the business.
Some of the initiatives include measures to reduce fuel consumption and food waste, as well as route network optimisation, crew rostering efficiencies, and streamlining management processes. The national carrier also plans to invest in digital technologies and improve customer self-service options.
In August, Singapore Airlines brought on some of the financial operations of its subsidiary SilkAir (SLK, Singapore Changi) as part of a consolidation effort to cut costs. It has also reintegrated its cargo unit Singapore Airlines Cargo (Singapore Changi), and in July completed the merger of its two budget subsidiaries, Tigerair (Singapore Changi) and Scoot (TR, Singapore Changi), under the Scoot brand.
So far, no definite staff cuts have accompanied the rhetoric around Singapore's turnaround plans. But earlier this year, CEO Goh Choon Phong suggested that it was not out of the question. "There will certainly be changes in the way we do things, and staff would have to pick up new skills and the company would certainly want to look at how best to support their retraining and redeployment," he said during the 4Q results presentation. At that time, the carrier had sustained a surprise Q4 net loss of SGD138 million (USD102 million).
