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Singapore Airlines joins Cathay Pacific in cutting jobs

Singapore Airlines has become the second Asian carrier to look to job cuts amid heightened competition from budget carriers in the region.

SIA has indicated that many jobs may become “irrelevant” as it starts a “radical review” of its business, the South China Morning Post reported.

The action follows Hong Kong-based Cathay Pacific announcing the loss of 600 jobs last month in the biggest round of staff cuts in 20 years.

SIA chief executive Goh Choon Phong, who became chairman of Iata on Tuesday, told reporters that some jobs would become “irrelevant” while others would be redeployed.

He said it was too early to give numbers. Goh had earlier said he would be “leaving no stones unturned” in his transformation strategy.

SIA reported a net loss of S$138.3 million ($100 million) in the three months to March, its first quarterly loss since 2012.

A “transformation office” was set up last month to review its network, fleet product and service.

Iata chief economist Brian Pearce, said “big challenges” remained for Asian carriers among competition from budget airlines and on long haul routes.

However, reduced competition from Middle East carriers as they trim expansion was benefiting the region, he said.

Pearce rejected the notion that trouble at some of Asia’s biggest carriers was an indication of wider risks among airlines in the region.

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