Singapore Airlines is set to award its staff bonuses equivalent to roughly eight months of salary, made up of two components. Staff will receive a profit-sharing bonus equivalent to 6.65 months of salary. This arrangement is based on a long-standing annual profit-sharing bonus formula that the airline’s unions have agreed on. On top of this, there’s also an additional bonus equivalent to 1.5 months of salary, as an extra bonus to recognize the hard work and sacrifices made by the staff during the pandemic. Sana all!
Interestingly, while senior management will benefit from the profit-sharing scheme, they will not be eligible for the ex-gratia bonus. This move signifies the company’s commitment to acknowledging the remarkable efforts and sacrifices made by its ground-level workforce.
Strong Company Turnaround
In an astounding feat for Singapore Airlines, the company recently reported the best financial results in its 76-year history. The group, which includes the budget airline Scoot, disclosed an annual net income of $1.6 billion. This is a remarkable turnaround, considering the airline suffered three consecutive years of losses.
Despite not being back to pre-pandemic capacity, with passenger capacity at only 79% of pre-pandemic levels, Singapore Airlines has shown that maintaining high fares and limiting capacity can be good for business. The company carried 26.5 million passengers during the financial year, a six-fold increase compared to the previous year.
A Testament to Employees’ Dedication and Sacrifice
This record profit is a testament to the airline’s strategic initiatives and proactive preparation, even when borders remained closed. However, most importantly, it is the hard work, dedication, and sacrifices of the airline’s employees that made this possible. It is worth noting that in September 2020, the airline’s pilots agreed to take pay cuts of up to 60% to save about 400 jobs, a decision reported by Today, a Singaporean newspaper.
As a gesture of appreciation and recognition of these efforts, Singapore Airlines has decided to reward its employees with generous bonuses.
Singapore Airlines’ success story underscores the importance of strategic initiatives, employee dedication, and the ability to adapt to changing circumstances. It also sets an inspiring precedent for other airlines, emphasizing the power of appreciating and rewarding staff contributions during challenging times.
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