Singapore Airlines (SIA) said it has reached agreement with its pilots' union on pay cuts and non-paid leave as part of cost-cutting efforts to counter the effects of the global economic downturn.
SIA said in a statement issued late on Friday that pilots have agreed to take a day of leave each month without pay.
Pilots also agreed to take a cut of 65 percent of one day's pay out of their monthly basic salary, the airline said.
It said the measures, which will take effect from July 1, were necessary as "the airline has surplus pilot resources because of the cutback in flights following the sharp fall in demand for air travel."
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SIA had earlier reached agreement with its other staff unions on cost-cutting measures, including shorter work months and grounding some of its planes.
The airline said nearly 2,000 employees have signed up for its voluntary no-pay leave scheme, under which staff could apply for leave without pay for durations of up to two years.
In addition, SIA management will take salary cuts from July ranging between 10 and 20 percent and the board of directors volunteered to have their fees slashed by 20 percent.
The airline industry has been among the worst hit by the global economic slump which has crimped travel demand. SIA said last month its fourth-quarter net profit dived 92 percent from the previous year to 41.9 million Singapore dollars ($A36.28 million)
Earlier this month, the International Air Transport Association (IATA) said the world's airlines are expected to lose nine billion dollars this year, almost double an estimate it made just three months ago.
This is in addition to the 10.4 billion dollars global airlines are estimated to have lost in 2008, IATA said.
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