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SIA to reduce 2,400 staff across its airlines and operate a smaller feet to “remain viable” amid uncertain COVID-19 crisis

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The Singapore Airlines (SIA) Group on Thursday (10 September) announced that it will slash about 2,400 staff across SIA, SilkAir and Scoot in Singapore as well as overseas station due to the unprecedented global aviation crisis.

In a press statement, SIA said that it had to cut about 4,300 position across its airlines, however, the retrenchment has been “mitigated by a recruitment freeze that was implemented in March 2020, open vacancies that were not filled, an early retirement scheme for ground staff and pilots, and a voluntary release scheme for cabin crew”.

As a result, the Group have eliminated some 1,900 positions and reduced the potential job cuts to about 2,400 across its airlines.

“Discussions have begun with our Singapore-based unions. The Group will work closely with them to finalise the arrangements as soon as possible for those affected, and try to minimise the stress and anxiety on our people,” SIA added.

According to SIA, the retrenchment decision was taken “in light of the long road to recovery for the global airline industry due to the debilitating impact of the Covid-19 pandemic, and the urgent need for the Group’s airlines to adapt to an uncertain future”.

As the Industry groups have forecast that passenger traffic will not return to previous levels until around 2024, SIA noted that it expects to operate under 50 per cent of its capacity at the end of this financial year as compared to the pre-COVID levels.

It went on to say that SIA Group is in an “even more vulnerable position” as it does not have a domestic market that will be the first to see a recovery while comparing with the most major airlines in the world.

“In order to remain viable in this uncertain landscape, the Group’s airlines will operate a smaller fleet for a reduced network compared to their pre-COVID operations in the coming years,” it added.

SIA Chief Executive Officer (CEO) Goh Choon Phong also expressed that none of them could have predicted the “devastating impact” of COVID-19 on the global aviation industry.

“From the outset, our priorities were to ensure our survival and save as many jobs as possible. Given that the road to recovery will be long and fraught with uncertainty, we have to unfortunately implement involuntary staff reduction measures,” Mr Goh said.

Highlighting that it is the “hardest and most agonising decision” that he has had to make, the CEO noted this is “not a reflection of the strengths and capabilities of those who will be affected”, but due to an unprecedented global crisis that has engulfed the airline industry.

He then assured that the process will be conducted “in a fair and respectful manner”, adding that they will do their best to ensure that the affected employee “receive all the necessary support during this very trying time.”

In response of this, Transport Minister Ong Ye Kung took to his Facebook page on Thursday said that the “Government will do all we can” to support the affected workers.

To help the retrenched SIA employee, Mr Ong mentioned that the Government will work with National Trades Union Congress (NTUC) Singapore and industry partners to place the workers in jobs, help them transit to other industries, or enrol them in suitable industry attachment and traineeship programmes.

“I am sure their skills are much needed elsewhere too. More importantly, we will continue to press on, to restore air travel in a safe manner, to get SIA planes back up in the sky, and revive our air hub,” he remarked.

Earlier in March, the SIA group has announced that 96 per cent of its capacity that had been scheduled will be slashed after waves of increased border controls in many countries to contain the COVID-19 outbreak.

Of the total fleet of 147 planes, around 138 of SIA and SilkAir planes will be grounded. SIA’s budget unit, Scoot is going to suspend “most of its network” as it grounds 47 of its 49 planes.

This drastic cut in capacity is the company’s “greatest challenge that the SIA Group has faced in its existence”, the airline remarked.

In February, board directors’ fees and management salaries were slashed, alongside the introduction of voluntary no-pay leave scheme for workers up to certain management positions, SIA noted.

Mr Goh himself personally volunteered to take a 15 per cent pay cut, while the executive vice-presidents taking a 12 per cent cut, and the senior vice-presidents 10 per cent.

It was also reported in April that a total of 30 SIA cabin crew members will redeployed as “care ambassadors” at the Khoo Teck Puat Hospital (KTPH) in Yishun.

Without any direct contact with COVID-19 patients, the team will be assigned to low-risk wards as well as support hospital care teams to carry out basic caregiving procedures, nutritional care, as well as patient service management for patients. These general wards cater to patients with chronic diseases, heart disorders, and acute surgical conditions.

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Singapore

SMRT forms review committee as TSIB launches independent probe into 6-day EWL disruption

Following the Land Transport Authority’s announcement of an investigation into the six-day East-West Line disruption, SMRT also announced the establishment of a committee to review the incident in line with its internal policy. An independent safety investigation will be conducted by the Transport Safety Investigation Bureau (TSIB), as announced by Transport Minister Chee Hong Tat.

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SINGAPORE: Following the Land Transport Authority’s announcement on Wednesday (2 October) of an investigation into the six-day service disruption on the East-West Line, an Expert Advisory Panel (EAP) has been appointed to review the findings and provide technical advice.

Later that evening, the train operator SMRT also announced that a committee has been established to review the EWL disruption.

In a Facebook post, SMRT stated: “In accordance with SMRT’s internal policy, the SMRT Board has established a committee to review the recent East-West Line incident.”

The committee will be chaired by SMRT Independent Board Member and former Chief Defence Scientist, Mr Quek Gim Pew. Another Independent Board Member, Mr Ng Chin Hwee, former CEO of SIA Engineering Company, will serve as the committee’s Deputy Chairman.

The committee will also include independent panel members.

A third investigation will be led by the Transport Safety Investigation Bureau

A third investigation will be conducted by the Transport Safety Investigation Bureau (TSIB), a department within the Ministry of Transport.

This was revealed by Transport Minister Chee Hong Tat in a Facebook post on Wednesday.

“TSIB under MOT will also be carrying out an independent safety investigation on the incident. ”

Minister Chee noted that the recent disruption along the East-West Line has affected many commuters and caused substantial damage to the rail infrastructure.

He added that the investigations are expected to be completed in a few months, and the LTA will release its findings to the public.

Earlier, in a statement, the LTA indicated that the investigation will explore multiple aspects to prevent future occurrences of such significant service interruptions.

The investigation is expected to be completed within a few months, and the findings will be made public.

“First, we will investigate the root cause of the axle box failure. LTA’s investigations will include a forensic study into the nature of the axle box failure and identify any other potential contributory factors that led to the incident,” the LTA stated.

The investigation will also review the procedures related to fault detection and incident handling, assessing whether appropriate actions were taken.

Additionally, the LTA will evaluate the service recovery and disruption mitigation efforts to “ascertain the timeliness and comprehensiveness of the responses taken” by train operator SMRT.

To support its inquiries, the LTA will appoint an Expert Advisory Panel (EAP) to review the findings and provide advice on technical matters.

The panel will be chaired by Mr Malcolm Dobell, who brings over 45 years of railway expertise and previously served as the Head of Train Systems for London Underground.

The LTA noted that these experts possess extensive knowledge in rail operations and maintenance, railway engineering, rail system engineering, train design, and material science.

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Singapore

LTA launches investigation into causes of six-day disruption on East-West Line

On Wednesday (2 October), the Land Transport Authority (LTA) announced an investigation into the six-day service disruption on the East-West Line. The inquiry will examine technical failures, response procedures, and commuter management, with input from an Expert Advisory Panel. This review follows widespread inconvenience that impacted over 2.1 million commuters.

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SINGAPORE: The Land Transport Authority (LTA) of Singapore has initiated a comprehensive investigation into the disruption of services on the East-West Line that occurred between Jurong East and Buona Vista stations from 25 to 30 September 2024.

In a statement released on Wednesday (2 October), the LTA indicated that the investigation will explore multiple aspects to prevent future occurrences of such significant service interruptions.

The investigation is expected to be completed within a few months, and the findings will be made public.

“First, we will investigate the root cause of the axle box failure. LTA’s investigations will include a forensic study into the nature of the axle box failure, and identify any other potential contributory factors that led to the incident,” said LTA.

The investigation will also review the procedures related to fault detection and incident handling, assessing whether appropriate actions were taken.

Additionally, the LTA will evaluate the service recovery and disruption mitigation efforts to “ascertain the timeliness and comprehensiveness of the responses taken” by train operator SMRT.

The Transport Safety Investigation Bureau (TSIB) will conduct an independent safety investigation into the disruption, as confirmed by the Ministry of Transport.

To support its inquiries, the LTA will appoint an Expert Advisory Panel (EAP) to review the findings and provide advice on technical matters.

The panel will be chaired by Mr Malcolm Dobell, who brings over 45 years of railway expertise and previously served as the Head of Train Systems for London Underground.

Other panel members include Dr Tony Lee Kar Yun, Operations and Innovation Director of Hong Kong’s MTR Corporation;

Mr. Chen Chao, Deputy General Manager of the Vehicle Branch at Shanghai Shentong Metro Group;

Mr Chew Tai Chong, a veteran in railway system engineering;

Professor Gan Hiong Yap from the Singapore Institute of Technology;

and Professor Manoj Gupta, an expert in material science at the National University of Singapore.

The LTA noted that these experts possess extensive knowledge in rail operations and maintenance, railway engineering, rail system engineering, train design, and material science.

COI convened for 2011 major North-South Line breakdown

This current investigation marks a departure from the response to a previous major incident in 2011, when a Committee of Inquiry (COI) was convened after two significant breakdowns on the North-South Line.

That COI scrutinised SMRT’s operations after breakdowns on 15 and 17 December 2011, which also caused widespread commuter inconvenience.

On 1 October, the Progress Singapore Party (PSP) issued a public statement calling for another Committee of Inquiry into the recent disruptions.

The party urged Transport Minister Chee Hong Tat to convene a COI to ensure that the incident is fully examined, citing the considerable inconvenience caused to commuters.

In its statement, the PSP highlighted the need for a review of the current maintenance and inspection regimes to prevent such disruptions in the future.

The 2011’s COI convened by the Ministry of Transport and directed by then-Prime Minister Lee Hsien Loong, was tasked with identifying the causes and recommending measures to prevent future occurrences.

The first disruption, on 15 December 2011, occurred during evening peak hours, when four trains lost traction power and stalled between City Hall and Braddell stations.

This breakdown affected approximately 127,000 commuters, with the disruption lasting about five hours.

Several passengers were forced to evacuate onto the tracks, and the inadequate bus bridging services compounded commuter frustrations.

Fortunately, there were no major injuries, though two passengers fainted due to the lack of ventilation and lighting in one of the trains.

The second incident occurred on 17 December 2011, affecting about 94,000 commuters.

This disruption lasted around seven hours, but was relatively better managed due to lessons learned from the earlier breakdown.

The immediate cause of both disruptions was found to be the sagging of the third rail, which powers the trains.

The sagging occurred due to the failure of multiple support “claws,” leading to damage to the trains’ Current Collector Device (CCD) shoes, which draw power from the third rail.

In March 2012, LTA also submitted its own investigation report regarding the December 2011 breakdowns to the COI.

The COI’s report, issued on 3 July 2012, concluded that the incidents were preventable and attributed them to inadequate maintenance and oversight.

It recommended improvements in maintenance practices, better detection of defects, and enhancements in the emergency management framework to ensure quicker response times during future disruptions.

The 2011 breakdown ultimately led to the resignation of SMRT’s then-CEO, Saw Phaik Hwa, who also stepped down as a director of SMRT in 2012.

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