SINGAPORE AIRLINES' (SIA) pilots have agreed to take one day of leave without pay each month, and a cut of 65 per cent of one day's pay (pro-rated from monthly basic salary), the airline announced Friday.

The agreement was signed yesterday between SIA and the Air Line Pilots Association-Singapore (ALPA-S) and takes effect from July 1.  

"The airline has surplus pilot resources because of the cutback in flights following the sharp fall in demand for air travel," SIA said in a news release.

This new agreement will supercede an interim arrangement provided for pilots to take one day of compulsory no-pay leave every month, which started in May 2009.

Beginning in April 2009, SIA's senior management staff went on a shorter work month scheme. Other managers followed suit in May.

Under agreements reached with the two other staff unions in the airline, the Singapore Airlines Staff Union (SIASU) and the Air-Transport Executive Staff Union (AESU), all ground personnel, cabin crew and administrative officers joined the shorter work month scheme in May.

In addition, nearly 2,000 employees have signed up for the airline's voluntary no-pay leave scheme, under which staff could apply for leave without pay for durations of up to two years.

From July 2009, all management staff in SIA will take a cut in salary. The CEO will lead with a 20 per cent cut, with progressively lower rates down the ranks, to a minimum of 10 per cent.

SIA's Board of Directors has volunteered a cut of 20 per cent in fees for directors.

Altogether, these measures will save an estimated $21 million in costs for the current financial year.