In its latest and most drastic measure to deal with operations battered by the Covid-19 pandemic, the SIA Group said Thursday that it has decided to cut around 4,300 positions. However, the number of employees impacted by the exercise may be fewer - perhaps around 2,400 - as measures such as a recruitment freeze, natural attrition and voluntary departure schemes may cushion the blow. The vast majority of those affected are foreigners. The SIA Group said: "This decision was taken in the light of the long road to recovery for the global airline industry due to the debilitating impact of the Covid-19 pandemic, and the urgent need for the group's airlines to adapt to an uncertain future." Staff from SIA, SilkAir and Scoot were told of the move at virtual meetings Thursday, before the decision was made public. The SIA Group said it expects to operate at less than 50% of its capacity at the end of the financial year in March next year, as compared with the levels before the Covid-19 pandemic. It is currently operating at only 8% of its usual capacity. The group said: "Relative to most major airlines in the world, the SIA Group is in an even more vulnerable position as it does not have a domestic market that will be the first to see a recovery. In order to remain viable in this uncertain landscape, the group's airlines will operate a smaller fleet for a reduced network compared to their pre-Covid operations in the coming years." In a memo to staff, SIA chief executive Goh Choon Phong said it was a "painfully difficult decision" to retrench staff, the toughest one that he has had to make in his 30 years at the company. Goh said that the group is working with Singapore-based unions to finalise the arrangements for affected staff and to minimise stress and anxiety for them.<br/>
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Lufthansa plans to eliminate its biggest passenger jets as it deepens fleet cuts, leading to a parallel surge in job reductions, people with knowledge of the proposals said. Lufthansa is looking at retiring remaining Airbus A380 double-deckers, the bulk of smaller A340s, and all of its Boeing 747-400 jumbos, according to the people. There would also be a cull of narrow-body planes that feed longer routes, they said. The fleet cuts would surpass the 100-aircraft reduction so far disclosed by Lufthansa, net of new deliveries, with job losses exceeding the 22,000 that the carrier had said such a contraction would entail, said the people. No final decision has been made on the measures, they said. Europe’s biggest airline is falling back on its most economically sustainable routes as the coronavirus crisis roils global travel markets. Retiring thirsty four-engine aircraft like those being targeted will remove high-capacity models that are hardest to fill while also boosting margins by slashing fuel burn. Lufthansa may keep a handful of younger A340-600s, preserving capacity for busier routes, the people said. That would also reduce the size of immediate writedowns, which will factor into its decision making, one person said. The group has so far said that while it aims to mothball about 300 planes next year and 200 in 2022, the 760-strong fleet will need to be about 100 aircraft smaller from 2023. Handelsblatt reported this week that the number cut could increase, without saying which models might be affected. The new moves would leave Lufthansa with a four-engine fleet limited mainly to Boeing 747-8I jumbos, of which it has 19, the youngest of which are just five years old.<br/>