Singapore Airlines says it will cut capacity by 11% in its next financial year starting 1 April. It is talking to its unions about sacrifices, and says any pay cuts will start at the top.
This could cause consternation at Qantas. Can anyone recall any senior management in a major Australian company talk about cutting the salaries of the CEO and CFO among others never mind Qantas?
The other figures released by Singapore Airlines today say freight is down by 20% and that it expects commensurate falls in passenger traffic because, historically, freight and passenger performance in its operations have always responded in similar measures to economic downturns.
The statement also puts pressure on Qantas and Virgin Blue to update their guidance on market conditions.
Both managements have noted that Australia is not immune to the downturn being experienced abroad. In which case, it’s time to talk figures.
