Singapore Airlines calls on cargo pilots to take unpaid leave

SINGAPORE Airlines (SIA) has been holding talks with its cargo pilots to encourage them to accept unpaid leave, in a move designed to avoid layoffs as the global economic crisis reduces demand for air freight.

SIA spokesman Stephen Forshaw was cited as saying in an AFP report that the period of unpaid leave will be for up to 30 months and that the measure is intended to deal with a forecast surplus of pilots in 2009 and beyond given the likelihood of placing a number of aircraft out of service until demand picks up. SIA Cargo is said to have 300 cargo pilots.

The outlook for the freight industry is weak. Around the world, shipping companies are parking vessels and all-cargo airlines are being severely affected, Mr Forshaw was quoted as saying in a statement.

Going forward, SIA Cargo needs to do all it can to contain costs. In doing so, the company will work with staff and unions to deal with the issues, with a focus on steps that can be taken to avoid retrenchments, which will only be considered as a last resort.

At this point, there is no talk of the airline calling on pilots for its passenger aircraft to take unpaid leave, but SIA is not ruling out the possibility.

We will respond to the changing demand climate quickly, and if this means we identify surplus staff, we will manage the issues, he said.

The report added that in November, 60.3 per cent of SIA's available cargo space was utilised, down from 64.5 per cent a year ago.

Source: American Shipper