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SIA chief warns that job cuts loom as part of business review

SINGAPORE — National carrier Singapore Airlines (SIA) said jobs are likely to be cut as part of the airline's business review to revive earnings following a surprise fourth-quarter net loss of S$138 million, its first in five years.

Singapore Airlines Ltd said jobs are likely to be cut as part of a business review to revive earnings following a surprise quarterly loss. Photo: BLOOMBERG

Singapore Airlines Ltd said jobs are likely to be cut as part of a business review to revive earnings following a surprise quarterly loss. Photo: BLOOMBERG

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SINGAPORE — National carrier Singapore Airlines (SIA) said jobs are likely to be cut as part of the airline's business review to revive earnings following a surprise fourth-quarter net loss of S$138 million, its first in five years.

The carrier's employees are aware of the possible headcount reduction under the process, the airlines' chief executive officer Mr Goh Choon Phong told reporters on Tuesday (June 6) at the sidelines of the annual meeting of the International Air Transport Association in Cancun, Mexico.

The group, including affiliates and units, employed approximately 24,350 workers at the end of March last year.

Some jobs may become "irrelevant", while some workers may need new skills for different tasks, Mr Goh said, adding that it is too early to provide numbers.

The review process that covers the carrier's fleet and network started more than six months ago, and SIA has hired external advisers for help, Bloomberg reported.

In response to a query by TODAY on potential job losses, an SIA spokesperson said: "There is really nothing new to add to what we have already said (last month).

"As mentioned, the review (covering both revenue generation and cost initiatives) is still underway so it is too early to speculate as to where there may be changes."

Last month, Mr Goh said the company would be looking at ways to support staff in retraining and redeployment, as some of the current jobs would have to be redesigned.

Mr Goh was quoted as saying: "There will certainly be changes in the way we do things and staff will have to pick up new skills … Some of the current jobs would have to be redesigned because they may not be relevant anymore."

The flag carrier had stated it would be taking "bold radical measures", with a focus on enhancing cost and service efficiencies to better position the company for long-term growth.

In view of a challenging 2017, SIA announced last month that it has set up a dedicated transformation office to conduct a "wide-ranging review" to better position the group for long-term, sustainable growth.

According to analysts, SIA's move to review and streamline operations was not surprising, given the cut-throat competition within the region and beyond, not to mention the impact on the airlines' yields.

The aggressive fare strategies of budget airlines as well as the Middle Eastern rivals have dented margins of legacy carriers such as SIA.

Having slipped into a loss for the first time in eight years, Cathay Pacific Airways said last month that it would eliminate 600 jobs in Hong Kong as part of the biggest business revamp in two decades. WITH AGENCIES

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