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Released Date - January 29, 2010
SOL – AIRLINE: SOL/STAR PACNEWS BIZ: Fri 29 Jan 2010
Solomon Airline downsizes in cost cutting exercise
29 JANUARY 2010 HONIARA (SOLOMON STAR) ---- National carrier Solomon Airlines has abolished two of its departments and sent home employees as part of cost-cutting measures. This was announced yesterday.
Abolished are the maintenance and mechanical workshop sections.
“These two departments are abolished because they are non-core activities and these work can be done by local enterprises,” the company said in a statement.
“As a State Owned Enterprise operating as a commercial entity, one of our major challenges is to review our core business and embark on a major change.
“This change will see us moving away from the way we do business before and align it accordingly with an appropriate organisation structure and staffing requirement,” it said.
The airline said the move was approved by its board.
It said the functions and activities of the two departments that were abolished would now be outsourced to local contractors.
Employees working within the departments have been made redundant.
It’s not disclosed how many staff are affected.
The airline said the action was also taken in light of growing competition and cost of operations.
“As is well known to us all, increased competition and pressures for improvements to services, infrastructure and equipment, as well as improved work practices and performances; downsizing and re-organisation have become a necessary part of business for most companies throughout the world, including the aviation industry.
“The redundancy exercise comes at a time when the global economic crisis also hit on other major airlines.
“Major carriers such as British Airways, Qantas, Virgin Blue and even Air Pacific have recently experienced major reorganisations and downsizing, resulting in employees being laid off.
“Japan Airline was recently announced bankrupt.
“SkyAirWorld is one of the classic example which went out of business last year as a result of the competition and economic down turn,” it said.
The airline added other reviews will continue throughout the company on an ongoing basis so as to compliment the airlines’ business improvement strategy….PNS (ENDS) |
