Singapore Airlines (SQ, Singapore Changi) has frozen recruitment and is evaluating other measures such as asking employees to take voluntary unpaid leave, according to The Straits Times. After significant capacity cuts across its US, European, North Asia, Southeast Asia, Southwest Pacific, Africa and West Asia networks resulting in a 7.1% decrease in its scheduled capacity (measured in ASKs) from February to end-May 2020, Singapore Airlines (SIA) has surplus manpower - believed to be as much as 500 cabin crew and 50 pilots.
An SIA spokesperson said to the newspaper: “In response to COVID-19, a general recruitment freeze has been implemented for all ground positions, and non-essential duty travel has been suspended.”
“We are closely monitoring the evolving situation and will be decisive in implementing any additional measures that may be needed. We will not do anything, however, that compromises the ENT! SQGR’s long-term competitiveness.”
SIA Chief Executive Officer (CEO) Goh Choon Phong sent a note to staff on February 25 that the Star Alliance carrier was taking preventive measures to conserve cash and reduce costs.
“We will continue to be nimble and flexible in adjusting our capacity to match the changing demand patterns in the market. Selected capital expenditure has been deferred, and we have tightened discretionary operating expenditure. We have also proactively reached out to our suppliers and partners to discuss additional mitigating measures during this difficult time,” he said.
The CEO also indicated that the airline was working hard on the revenue side to “aggressively drive sales, and jointly promote air travel to and through Singapore” by working with tourism agencies and travel partners around the world.
Goh finished his note by saying that these are difficult times for SIA but urged staff to move forward together. “Yes, there are strong headwinds. But the Group has successfully navigated past challenges such as 9/11, Sars and the 2008 global financial crisis... I am confident that together, we can overcome [the difficult times] and emerge as an even stronger SIA.”
