SIA Cargo re-integrates with Singapore Airlines: The impact on nearly 900 staff

In a press release, national carrier Singapore Airlines (SIA) announced that its wholly-owned subsidiary, SIA Cargo, is to be re-integrated as a division within SIA, after separating in 2001. This move is expected to improve efficiency through greater synergy with the wider SIA Group.

The re-integration is expected to be completed in the first half of 2018, when SIA Cargo will become the ‘Cargo Division’ of SIA. There will be no change to SIA Cargo’s operations, and the Cargo Division will continue to manage the passenger aircraft space for SIA, SilkAir and Scoot.

Notably, SIA Cargo currently employees close to 900 employees, a majority of which are expected to be retained in the new Cargo Division, while some will be transferred to other SIA divisions.

There is a group of staff for whom alternative job positions have not yet been identified - for this group, SIA will look to facilitate placement opportunities elsewhere within the Group.

"The integration will provide new opportunities for staff development within the larger SIA organisation," noted Singapore Airlines' statement.

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To provide some context to the development, SIA Cargo was a division of SIA until 1 July 2001, when it became a separate company within the SIA Group. At the time, it was growing its fleet to up to 17 747-400Fs, and it was better suited to carry out its expansion as a standalone all-cargo airline.

"The airfreight market has since seen structural change, however, and SIA Cargo’s freighter fleet has been ‘right-sized’ in recent years to the current seven aircraft while the proportion of revenue from passenger aircraft ‘bellyhold’ capacity has increased significantly," SIA explained in the statement.

SIA CEO, Goh Choon Phong said: “Re-integrating SIA Cargo as a Division within Singapore Airlines makes sense from a business standpoint. It will improve efficiency and offer greater flexibility for staff deployment by maximising synergies with the larger SIA business.”

He further added that the Cargo Division will continue to provide high-quality products and services that customers have come to expect from SIA Cargo.

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