SINGAPORE (dpa) – Singapore Airlines Ltd (SIA) said Friday that it has offered its pilots unpaid leave of up to two years as escalating fuel prices bite into profits. The company has given over 1,000 first officers, second officers and cadets until the end of the month to apply for a leave of absence of between one week and two years. SIA, which is one of the most profitable airlines in the world and boasts a young fleet of aircraft, has exempted captains from the unpaid leave program. Staff who take up the offer will be allowed to work for other airlines during their leave subject to SIA approval. Company spokesman Nicholas Ionides was quoted as blaming “slower than anticipated growth” after the recent financial crisis. “We view the surplus pilot situation as temporary,” he added. There were no plans yet to make the no-pay leave scheme compulsory or to extend it to captains, he said. The Singapore flag-carrier in 2009 imposed unpaid leave on pilots as part of cost-cutting measures. Analysts said that besides high aviation fuel costs, SIA is also feeling the heat from low-cost carriers, and has seen its profits drop for the last three quarters. This month, Singapore's Changi Airport said it was rebuilding its low-cost terminal to cater to rapidly rising demand from budget carriers, which now account for over 25 per cent of its passengers. BM
