Insider info from Singapore Airlines Group
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This is an internal memo for Singapore Airlines staff.
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With immediate effect, all employees of the Singapore Airlines Groupare to take one day off per month(w/o pay) indefinitely due to fall in traffic and demand. Staff can either opt to take the one day off per month(w/o pay) or use their leave.
Singapore Airlines Pilots(foreign country based) whose contracts with the airline will be due for renewal soon will NOT be renewed(aka terminate of contracts). This is a precursor move towards retrenchments. Prepare for outsourcing and merger of departments within the SIA Group. Divesting of the cargo division and other units such as SATS Catering will proceed as per planned.
Some flights of SQ have been noticed to have a sharp drop in passenger capacity. SIN-LHR is one of them. Plans to put tri-daily A380s have been put on hold as there is spare capacity on board. Singapore Airlines will put twice daily A380s and one B77W instead. Paris will be flown with daily A380 and the B77W will be put to use for the SIN-LHR flight. Amritsar will be cancelled and flights to Seoul will be periodically cut(in between days depending on demand and info from Ticketing Dept). Reductions of flights to Seoul is due to the sudden depreciation of the Korean Won and lack of feeder traffic. The Singapore - Incheon Seoul - Vancouver flight has been terminated due to lack of premium passengers on the route.
The SIN-DME-IAH flight has been running at below 40% capacity on most days. First class has been known to run empty, business class at 50% and economy class at below 50%. Cargo is high yield. However the expense of putting a B77W might not be justified in the long term. The SIN-DME-IAH will remain in the Northern Summer schedule. However it remaining in the Northern Winter schedule has to be reevaluated. Cabin crew doing the route have to take a 10 days long week which cannot be justified with current loads.
Cost-cutting will be implemented. Steven Forshaw of the SQ PR Dept has left the company. A staff will be appointed as Interim Manager.
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Originally posted by Fryderyk HPH:
This is an internal memo for Singapore Airlines staff.
________________________
With immediate effect, all employees of the Singapore Airlines Groupare to take one day off per month(w/o pay) indefinitely due to fall in traffic and demand. Staff can either opt to take the one day off per month(w/o pay) or use their leave.
Singapore Airlines Pilots(foreign country based) whose contracts with the airline will be due for renewal soon will NOT be renewed(aka terminate of contracts). This is a precursor move towards retrenchments. Prepare for outsourcing and merger of departments within the SIA Group. Divesting of the cargo division and other units such as SATS Catering will proceed as per planned.
Some flights of SQ have been noticed to have a sharp drop in passenger capacity. SIN-LHR is one of them. Plans to put tri-daily A380s have been put on hold as there is spare capacity on board. Singapore Airlines will put twice daily A380s and one B77W instead. Paris will be flown with daily A380 and the B77W will be put to use for the SIN-LHR flight. Amritsar will be cancelled and flights to Seoul will be periodically cut(in between days depending on demand and info from Ticketing Dept). Reductions of flights to Seoul is due to the sudden depreciation of the Korean Won and lack of feeder traffic. The Singapore - Incheon Seoul - Vancouver flight has been terminated due to lack of premium passengers on the route.
The SIN-DME-IAH flight has been running at below 40% capacity on most days. First class has been known to run empty, business class at 50% and economy class at below 50%. Cargo is high yield. However the expense of putting a B77W might not be justified in the long term. The SIN-DME-IAH will remain in the Northern Summer schedule. However it remaining in the Northern Winter schedule has to be reevaluated. Cabin crew doing the route have to take a 10 days long week which cannot be justified with current loads.
Cost-cutting will be implemented. Steven Forshaw of the SQ PR Dept has left the company. A staff will be appointed as Interim Manager.
quote first......
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No need quote first. Today 90cents paper got liport olrdy.
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Originally posted by Manager433:
No need quote first. Today 90cents paper got liport olrdy.
Was it this comprehensive?
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Are you quoting the memo verbatim, or merely paraphrasing it? It seems rather poorly written from a grammatical perspective--I would have thought that a memo as important as that would have been scrupulously proofread before being distributed.
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TS's motive in posting tis memo is....?
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Originally posted by Meia Gisborn:
Are you quoting the memo verbatim, or merely paraphrasing it? It seems rather poorly written from a grammatical perspective--I would have thought that a memo as important as that would have been scrupulously proofread before being distributed.
The memo is something like 12 pages long and differs from dept to dept and sector to sector.
But the things I stated above are same in all memos distributed in the depts.
I just took out the most important parts of it. I have no idea if and when this might be released on the main media(CNA, News 5, MediaCorp...).
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Originally posted by monoslayer:
TS's motive in posting tis memo is....?
To let the aviation community know that Singapore Airlines is considering retrenchments and has already implemented a policy of making staff take one day off w/o pay for every month. And also pilots(based overseas) might not have their contracts renewed when they end.
Also to note the poorly performing sectors and routes of the Singapore Airlines Group.
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Originally posted by Meia Gisborn:
Are you quoting the memo verbatim, or merely paraphrasing it? It seems rather poorly written from a grammatical perspective--I would have thought that a memo as important as that would have been scrupulously proofread before being distributed.
What to do?
PR guy left already.
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Originally posted by charlize:
What to do?
PR guy left already.
Good point!
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Originally posted by charlize:
What to do?
PR guy left already.
LMAO... He was paid very well(in excess of $16k per month) and most of the time he was on leave or jetsetting. He was quite clever actually, resigning instead of waiting for the company to retrench him.
So much for foreign talent... His job only shake leg one...
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Originally posted by Meia Gisborn:
Good point!Actually PR dept now is very slack one... Got a lot of contacts there and they say they fear the axe might come down on them...
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Originally posted by Fryderyk HPH:
Actually PR dept now is very slack one... Got a lot of contacts there and they say they fear the axe might come down on them...
Not a very pleasant position to be in, working in perpetual fear that you could be called into your supervisor's office at any time for the talk.So it seems SQ isn't completely immune from the market forces that have economically crippled so many other airlines worldwide. Hopefully, these cuts won't adversely affect SQ's service standards to the extent that it has for other airlines.
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Originally posted by Meia Gisborn:
Not a very pleasant position to be in, working in perpetual fear that you could be called into your supervisor's office at any time for the talk.So it seems SQ isn't completely immune from the market forces that have economically crippled so many other airlines worldwide. Hopefully, these cuts won't adversely affect SQ's service standards to the extent that it has for other airlines.
SQ is definitely not immune to global turn of events. In fact it is less immune.
There are many factors. Usually in a country where there is demand for domestic traffic(China) travel tends to be up quickly and domestic flights are money makers if the airlines do it right. Singapore has no domestic market.
Secondly Singapore is at the crossroads of the Kangaroo Route, the link between Australia and Europe. This Kangaroo Route traffic is highly profitable for SIA. However SIA is seriously affected by this. Less people are willing to spend money travelling these days, more so for high premium pax. Problem for SIA is magnified becoz its fares are always at the premium compared to other airlines and that if people on both sides refuse to travel the effect is multiplied.
Singapore is also too far south to be an Asian hub, though it is now to a certain extent. HKG/BKK is better suited. However Singapore has a better biz environment. But if the Biz traffic is the most severely affected, what does that tell you about Singapore Airlines Biz Class loads...
SIA is a well managed airline not like Alitalia, Olympic and TAP Air Portugal. But there are many factors that make SIA a profitable airline. However if these factors work AGAINST the airline, one can only expect SIA to not make normal profits.
In SIA terms, profits which are not what they use to be = cut-cost = Retrenchments, out sourcing etc.
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But people from the top recently saying that market bottoming out already.
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-Deleted-
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Originally posted by charlize:
But people from the top recently saying that market bottoming out already.
That is just to please the shareholders...
Another six months to a year for the market to bottom out...
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Are u sure this unpaid leave policy is forced on all SIA Group staff or on all SIA staff ? I dun think the other subsidaries except for SQ cargo are taking hits as bad as SIA. Just a few years ago, they delinked the PSB for the subsidaries saying each subsidary is independent from SIA with SIA & SIA cargo getting 6 mths and SATS getting only 2 mths ! I believe SIA Cargo made a loss last year as well.
Good times, to each his own. Bad times, let's all share in the pain.
Funny how much of a difference a year makes !
And as for the downfall of pax, it is much to do with their arrogance as well as the econ downturn. I.E: PPS debacle.
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Originally posted by leewan:
Are u sure this unpaid leave policy is forced on all SIA Group staff or on all SIA staff ? I dun think the other subsidaries except for SQ cargo are taking hits as bad as SIA. Just a few years ago, they delinked the PSB for the subsidaries saying each subsidary is independent from SIA with SIA & SIA cargo getting 6 mths and SATS getting only 2 mths ! I believe SIA Cargo made a loss last year as well.
Good times, to each his own. Bad times, let's all share in the pain.
Funny how much of a difference a year makes !
And as for the downfall of pax, it is much to do with their arrogance as well as the econ downturn. I.E: PPS debacle.
I second that,We at SATS work like shit yet get only 2 mths while the cabin crew plus other SIA staffs enjoyed a fat 6 mth bonus.Even CIAS got 3.5 mths!The loss making Swissport got 2.5 mths.
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Originally posted by carbikebus:
I second that,We at SATS work like shit yet get only 2 mths while the cabin crew plus other SIA staffs enjoyed a fat 6 mth bonus.Even CIAS got 3.5 mths!The loss making Swissport got 2.5 mths.
This is the SIA Group for you...
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Originally posted by leewan:
Are u sure this unpaid leave policy is forced on all SIA Group staff or on all SIA staff ? I dun think the other subsidaries except for SQ cargo are taking hits as bad as SIA. Just a few years ago, they delinked the PSB for the subsidaries saying each subsidary is independent from SIA with SIA & SIA cargo getting 6 mths and SATS getting only 2 mths ! I believe SIA Cargo made a loss last year as well.
Good times, to each his own. Bad times, let's all share in the pain.
Funny how much of a difference a year makes !
And as for the downfall of pax, it is much to do with their arrogance as well as the econ downturn. I.E: PPS debacle.
Right now on SIA staff. Not long before the subsidiaries will be hit too.
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Right now on SIA staff. Not long before the subsidiaries will be hit too.
I highly doubt so. At the moment, AFAIK, SATS is making up for the slack caused by SIA flight cancellations with the contract won over by Tiger Air and other third party airlines. I think the same goes for SIAEC. That means the excess manpower caused by the flight cancellations are channeled elsewhere. Not so at SIA.
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Originally posted by leewan:
I highly doubt so. At the moment, AFAIK, SATS is making up for the slack caused by SIA flight cancellations with the contract won over by Tiger Air and other third party airlines. I think the same goes for SIAEC. That means the excess manpower caused by the flight cancellations are channeled elsewhere. Not so at SIA.
Yes that's happening now.Cost cutting measures suchs as no Nil break,Meal chit and reduce of OTs which make the company still going strong.Dun forget that they aquire Singapore Food Industries too.SATS now are much smarter than previous.They aren't going to be treated like second class by SIA anymore.
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Originally posted by leewan:
I highly doubt so. At the moment, AFAIK, SATS is making up for the slack caused by SIA flight cancellations with the contract won over by Tiger Air and other third party airlines. I think the same goes for SIAEC. That means the excess manpower caused by the flight cancellations are channeled elsewhere. Not so at SIA.
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Originally posted by carbikebus:
Yes that's happening now.Cost cutting measures suchs as no Nil break,Meal chit and reduce of OTs which make the company still going strong.Dun forget that they aquire Singapore Food Industries too.SATS now are much smarter than previous.They aren't going to be treated like second class by SIA anymore.
This concurs with what i said about SIA and the soon to be coming termination of workers. Pity the pilots based overseas whose contracts are ending soon... Most won't be extended...
Back to topic. SQ load factor has dipped to 69% in terms of pax capacity. 72% is the breakeven factor. In other words, the SIA Group is losing money in flights... The worst is yet to be...