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Conflict management processes 1. SARS When dealing with the SARS crisis in 2003, SIA took action not only in changing their long standing policy of not retrenching staff unless necessary, to laying off 414 local employees so as to cut cost after already having staff take a 11% pay cut and taking a 24 day unpaid leave per year. This was to ‘reduce staff costs and increase its (SIA) competitiveness in a rapidly changing industry,’ said Loh Meng See, the airline senior vice-president for human resources.
With the financial year for 2003 starting off on a bad note, the further detrimental effects of the SARS crisis has forced Singapore Airlines to do what was necessary, to adapt to the environment and change in order to keep up and stay afloat. http://resources. bnet. com/topic/sars+and+singapore+airlines. html ??http://english. people. com. cn/200306/19/eng20030619_118550. shtml ??http://news. bbc. co. uk/2/hi/business/3042310. stm 2. Rising oil prices When oil prices in 2004 hit $42. 5 per barrel, Singapore Airlines made changes by extending an extra fuel surcharge of $5 for each leg of its flights. This surcharge was initially imposed for certain routes like UK and France, but as circumstances call for it, they have been compelled to implement it for all destinations now. By adding a $5 surcharge to every ticket they sell, its slightly possible for Singapore Airlines to be able to offset the increase in oil prices, and manage to still make some money. http://www. moodiereport. com/document. php? c_id=1178&doc_id=4158 3. Terrorists (911)
An Aviation Security Task Force was established in December 2002 to comprehensively review security measures at Changi Airport, on board SIA and SilkAir aircraft, and at overseas destinations. security measures enacted are visible to the public. At Changi Airport, access to restricted areas of the airport, aircraft and other key installations is guarded and closely monitored. The Police and SAF mount joint patrols of the airport concourse and other sensitive areas. All checked-in baggage is also screened through an in-line baggage screening system.
In the air, Singapore’s two main airlines have moved to tighten and control access to the cockpit, and improve awareness in the cockpit of potential terrorist situations. Both carriers have implemented measures such as the installation of bullet-proof doors and surveillance cameras for the cockpit entry area. The most significant of the in-flight security measures is the deployment of air marshals on selected SIA and SilkAir flights. http://merln. ndu. edu/whitepapers/Singapore-2004. pdf 4. Worker strikes 5. Taipei crash Organizational change and leadership process *