SINGAPORE AIRLINES PLANS TO REDUCE CAPACITY

KUALA LUMPUR, Feb 16 (Bernama) -- Singapore Airlines plans to reduce capacity in its coming financial year, beginning April 2009 and ending March 2010, by 11 percent from the preceding 12 months.

This was due to falling demand as reflected in advance bookings, the airline
said in a statement released here Monday.

In the course of the year, 17 aircraft will be decommissioned from the
operating fleet, Singapore Airlines said.

It added that before recession hit major markets, the plan was for only four
aircraft to be phased out -- one for conversion to a freighter and three to be
returned to lessors at completion of lease contracts.

"The drop in air transportation has been sharp and swift," said Singapore
Airlines' chief executive officer Chew Choon Seng.

"Given the falls over 20 percent that we have seen recently in air cargo
shipments and the tradition of demand for air travel following closely behind
trends on the cargo side of the business, we have to face the reality that 2009
is going to be a very difficult year," he said.

Chew said with Singapore Airlines not having a domestic operation to soften
the blow from the slump in international air traffic, it needed to act
decisively to address the situation.

According to him, the airline's efforts in improving efficiency and reducing
wastage have been and will be continuous.

Apart from containing costs without compromising on safety, security and
quality of services, the company was engaging the unions on measures that would
affect staff, Chew said.

Such measures include accelerated clearance of leave entitlements, voluntary
leave without pay, voluntary early retirement and shorter work months, he said.
-- BERNAMA