SIA Engineering (SIAEC) is stepping up efforts to mitigate the impact of the coronavirus crisis, including bigger management pay cuts and the deferral of non-essential capital expenditure.
The company is also planning to boost its own liquidity in what it described as “the increasingly difficult business environment” in a 2 April statement.
“We will also take measures to maintain adequate liquidity over the uncertain duration of this unexpected crisis and severe disruption,” it said.
SIAEC says it will defer non-essential operating costs, non-essential capital expenditure and the timing of certain payments.
Among other senior-level salary reductions, its chief executive and executive vice president will take a pay cut of 25% and 20%, respectively.
It is also working with unions on measures, including compulsory unpaid leave, furloughing staff and deferring salary increases and promotions.
The MRO company is 78% owned by Singapore Airlines, which disclosed on 26 March plans to issue S$5.3 billion ($3.7 billion) in equity and S$3.5 billion in 10-year mandatory convertible bonds in order to raise liquidity.
