Passenger planes parked at Changi International Airport in Singapore. AFP
Passenger planes parked at Changi International Airport in Singapore. AFP
Passenger planes parked at Changi International Airport in Singapore. AFP
Passenger planes parked at Changi International Airport in Singapore. AFP

Aviation jobs increase as global airlines race to meet surge in travel demand


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As border curbs and mandatory quarantines fall away, a fresh challenge is emerging for global aviation — rehiring staff fast enough to cope with a rebound in air travel that is already straining the industry.

Singapore, which has flung open its borders again, is hosting a two-day job fair until May 28 targeting everyone from graduates to mid-career professionals and former aviation workers who quit during the Covid-19 crisis. More than 6,600 jobs are available at the country’s airport, often voted the world’s best.

The task is to lure people to work in an industry that’s been decimated by the virus. Job losses and pay cuts hit aviation workers hard, and many have taken up other, less volatile careers. That’s resulted in a lack of manpower to properly handle the recovery.

Sydney Airport has struggled with queues and flight disruptions, while staff shortages at London’s Heathrow Airport hurt the earnings of British Airways parent IAG.

“People may be thinking twice about returning to such a cyclical industry, especially with economic growth concerns on the horizon,” said Jason Sum, an analyst at DBS Bank.

Hong Kong’s Cathay Pacific Airways, which saw its workforce shrink 37 per cent from a 2019 high to the end of 2021, sent out emails to hundreds of former cabin crew to gauge their interest in rejoining the company, according to a person familiar with the matter.

It’s an uphill task for a carrier hit harder than most due to Hong Kong’s travel restrictions.

In its recently released 2021 sustainability report, Cathay said the number of permanent employees voluntarily leaving jumped to a record high of 17 per cent. Two-fifths of all departures were aged under 30, a sign that younger people may have concluded that aviation isn’t a viable career.

In the US, which reopened quicker than Asia, thousands of flights were cancelled by Southwest Airlines and American Airlines Group last year partly due to crew issues.

Dutch airline KLM capped the sale of flights from its Amsterdam Schiphol hub due to an acute shortage of airport security staff.

Hong Kong’s Cathay Pacific Airways, which saw its workforce shrink 37 per cent from a 2019 high to the end of 2021, sent out emails to hundreds of former cabin crew to gauge their interest in rejoining the company. Reuters
Hong Kong’s Cathay Pacific Airways, which saw its workforce shrink 37 per cent from a 2019 high to the end of 2021, sent out emails to hundreds of former cabin crew to gauge their interest in rejoining the company. Reuters

Airline passengers, having been starved of travel options for so long, are getting frustrated as the impact of staffing shortages becomes clear.

Airlines mishandled 24 per cent more bags in 2021 than in 2020, according to SITA Baggage IT Insights, as international and long-haul flights resumed.

In India, 79 per cent of customers said service and the behaviour of airline staff has deteriorated sharply since Covid-19, a survey undertaken for Bloomberg News shows.

Hiring at Singapore’s Changi Airport will be focused on front-line passenger service positions, cargo, retail and cleaning, the airport operator said.

Before Covid-19, air transport and spending by foreign tourists arriving in Singapore by air contributed 11.8 per cent to the local economy and supported 375,000 jobs, according to the International Air Transport Association.

A wide range of companies are looking for talent at the Singapore job fair, including Pratt & Whitney Engine Services, duty-free operator Lotte Travel Retail Singapore and ground-handling and caterer SATS.

There are openings for service staff at check-in rows, food inspectors and emergency services, according to Changi Airport.

On Friday afternoon, at least 500 job seekers — including teenagers in school uniform — roamed the conference hall in the middle of Singapore’s business district, speaking with potential employers. They had the option of expressing interest to apply for a particular company, and then immediately go for interviews in tiny stalls.

In an adjacent makeshift hall, experienced aviation employees made speeches about their jobs.

Chandelle Chong, 25, who is interning with Dnata, Emirates Group’s aviation services arm, was looking for opportunities at United Parcel Services, Singapore Airlines' budget carrier Scoot and France’s Safran. In her final year of studying air transport management, Ms Chong is upbeat.

“I’m interning at Dnata, so we see the progress first hand and the industry is booming again,” she said. “We are more optimistic. We have been seeing potential.”

Dnata is looking to hire at least 300 staff in the second half of the year, according to Michelle Woon, a human resources manager with the company.

Work has resumed work on Terminal 5 at Singapore’s Changi Airport after being halted two years ago, while there are also plans to reopen Terminal 2 this weekend. Passenger traffic at the airport has returned to close to 50 per cent of pre-Covid levels from less than 20 per cent in mid-March.

“More flights and passengers mean more airport staff are needed to support this growth,” Changi said. “Airport partners are offering market competitive salaries, incentives and better career prospects.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: May 28, 2022, 5:14 AM