SINGAPORE, Feb 28 — Singapore Airlines (SIA) said today that it is cutting the pay of senior management after the Covid-19 outbreak had taken “a significant” toll on air travel.
In a media statement, SIA said over recent weeks it had “aggressively” cut flights, capital spending and operating costs and was now reducing manpower costs “during this difficult time”.
Chief executive officer (CEO) Goh Choon Phong will take the lead, with a 15 per cent cut, effective from March 1, it said.
Executive vice presidents and senior vice presidents will take pay cuts of between 10 per cent and 15 per cent, the statement added.
Other leadership positions will also see pay cuts. Divisional vice presidents and vice presidents will take a cut of seven per cent starting April 1, while senior managers and managers will take a cut of five per cent, starting May 1.
“The SIA board (of directors) has also taken a 15 per cent cut of their fees to show solidarity with all management and staff,” SIA added.
This includes the board chairman Tang Kin Fei, who was formerly the CEO of Sembcorp Industries.
A voluntary no-pay leave scheme has also been offered to all staff up to the level of divisional vice president.
“Those who opt for this can be assured that the jobs will be there upon their return,” said SIA.
SIA’s pay cuts of its senior staff follow similar announcements by other portfolio companies of state investment firm Temasek Holdings.
On Wednesday, developer CapitaLand announced that it is slashing wages for managerial and senior staff, while SMRT announced the same day that it would be reducing salaries and bonuses of its management staff.
Temasek had earlier announced similar measures, that it would freeze salary increases of all employees, and cut pay of those in management positions, among other measures.
SIA added that though there are “strong headwinds”, that the firm had navigated challenges such as the Sept 11, 2001 terrorist attacks, the 2003 severe acute respiratory syndrome outbreak and the 2008 global financial crisis.
SIA has also strengthened its “revenue generating capabilities and driven operational efficiencies” through its transformation programme over the last three years.
“That means SIA is able to tackle Covid-19 from a position of strength.” — TODAY
