Singapore Air Says CEO Succession On Track

May 24, 2010

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Singapore Airlines said the process for finding the next chief executive of the company has been going "smoothly and on track".

Chew Choon Seng, chief executive of SIA whose term is expiring this year, said the company will make an announcement in due course.

Chew, 63, has passed Singapore's official retirement age of 62. He joined SIA in 1972.

He said the airlines sees recovery in business class demand over the next 12 months but warned that the carrier is "not out of the woods yet".

"We will exercise caution in putting capacity back because of this concern that the recovery is still fragile," Chew told a press and analysts briefing.

The airline avoided its first annual loss last year, when the industry was badly hit by global economic recession, by posting an annual net profit of SGD$216 million, or 80 percent lower than in the 2008/09 financial year.

The Singapore flag carrier and its Asian rivals, coming out of an economic downturn, are facing new threats from the European market where travel could be hit by volcanic eruption in Iceland and economic problems.

(Reuters)