SINGAPORE (Mar 12): Aircraft maintenance, repair and overhaul (MRO) services provider SIA Engineering Company (SIAEC) has announced pay cuts to help manage costs.
The announcement comes amid the Covid-19 pandemic that has devastated air travel, creating an increasingly uncertain and difficult business environment for SIAEC.
With effect from March 15, the group’s chief executive officer and executive vice president will take pay cuts of 12% and 10%, respectively.
Its senior vice president and vice presidents will take cuts of 8% and 7% respectively from Apr 15, while senior managers and managers will take a cut of 5% from May 15.
SIAEC has also offered a voluntary no-pay leave scheme to all staff.
The SIAEC board of directors has also volunteered a 12% reduction in fees accruing with effect from Apr 1.
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The group says it has also taken various other measures to control costs, including cutting non-essential duty travel and training, deferring selected capital expenditure, and reducing non-essential operating costs.
“We will stay focused on the implementation of our transformation initiatives to further strengthen the group’s capabilities and enhance operating efficiencies for the long-term,” SIAEC said.
Shares in SIAEC tumbled 7.4%, or down 16 cents, to close at $2.01 on Thursday, before the announcement.
