Thursday, November 27, 2008

Daily news - 26 Nov

Job cuts not on horizon for SIA despite slowdown
Singapore Airlines – With local banks, brokers and shipping companies laying off staff, could Singapore Airlines be the next to cut its work force? After all, the airline industry has been hit hard by the global financial crisis and resultant sharp economic slowdown. But job cuts are not on the horizon, SIA officials insist. Spokesman Stephen Forshaw referred BT to remarks made by the company's CEO Chew Choon Seng at its interim results briefing just two weeks ago. Responding to reporters' questions on whether a slump in passenger numbers could force SIA to reduce headcount, Mr Chew said: 'You never say never in any business. But we are still a long way off from having to even contemplate that issue to the extent that, as you can see, our top line revenue is still growing.' But SIA is flying into strong headwinds. It reported a first-half profit of $682 million, down 26.8 per cent from $931.9 million in April-September 2007, even though revenue grew 12 per cent to $8.5 billion, from $7.6 billion. The top line is under pressure as the global economic crunch puts the brakes on discretionary travel, especially long haul.

Source: Kim Eng

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