It’s always nice to see airline executives leading by example. When times are tough, airline executives are quick to cut the pay of employees, asking them to be understanding of the sacrifices that are needed, and then give themselves big bonuses for all of their cost cutting. It’s nice when an airline doesn’t take that approach, for once.
Singapore Airlines CEO takes 15% pay cut
Just about all airlines in Asia are being hit hard by the coronavirus outbreak, given the reduced demand for travel. Singapore Airlines is no exception. The company is now reducing pay… but only for management.
As reported by the Straits Times, a memo sent out to Singapore Airlines employees on Friday talks about how management employees will be taking pay cuts:
- The CEO will be taking a 15% pay cut as of March 1
- The Board of Directors will be taking a 15% pay cut as of March 1
- Executive Vice Presidents will be taking a 12% pay cut as of March 1
- Senior Vice Presidents will be taking a 10% pay cut as of March 1
- Divisional Vice Presidents will be taking a 7% pay cut as of April 1
- Senior Managers and Managers will be taking a 5% pay cut as of May 1
Expect other cuts from Singapore Airlines
In light of the huge reduction in demand as a result of coronavirus, Singapore Airlines Group (including Singapore Airlines, SilkAir, and Scoot), have cut more than 3,000 flights through the end of May, which represents nearly 10% of their capacity.
As far as other employees go, Singapore Airlines is introducing a voluntary no-pay leave scheme, and the company will also engage staff unions to discuss additional measures that can be taken.
On top of that, there will be some broader cost-cutting measures, including deferring capital expenditures.
As was stated by Singapore Airlines’ CEO in the note:
“We will continue to be proactive in implementing measures to meet the evolving challenges. Tough decisions will be needed along the way. Management will take the lead, and all of us must be prepared to make sacrifices. Our priority is to save jobs.”
Kudos to Singapore Airlines’ CEO for this gesture. He’s the first airline CEO I know of to voluntarily take a pay cut as a result of this situation.
If tough times are ahead for the company (and employees), then it sure is nice when the CEO is the first person to make a sacrifice.