Regional airline of Singapore Airlines (SIA), SilkAir, announced today that it will be closing down its offices in 18 regional cities. The airline will also be letting go about 100 of its staff who are based in Indonesia, India, China, Thailand, Malaysia, Laos, and Myanmar, over the next 20 months.

This transfer is part of a merger plan that will see SilkAir seated under SIA. This retrenchment will come into full force when SilkAir transfers its existing services to Scoot, the budget arm of SIA.

About 600 SilkAir cabin crew will also be moved to SIA. These new transfers will also likely undergo a short training stint, stated Alan Tan, president of the Singapore Airlines Staff Union.

Meanwhile, an SIA spokesperson told The Straits Times that SilkAir will help the retrenched staff to find other possible work opportunities within SIA.

The airline is working in tandem with Scoot and other industry partners to help find alternative work for those affected.

The spokesman added, “We will also be engaging the services of employment agencies on placement assistance, and offering compensation packages where applicable.”

He also revealed that both SIA and SilkAir are reviewing their staff remuneration schemes, for both cabin crews and pilots, to ensure a smooth integration process. The SilkAir staff will receive SIA salaries and benefits. 

Mergers are never easy but the two airlines are taking steps to ease out the transition. As the two airlines have different remuneration packages, the aim will be to put everyone on an even keel and ensure no pilot is worse off. That is the challenge before the two airlines.