Following is a joint press release from Singapore Airlines Ltd. and Air Line Pilots Association of Singapore:

Singapore, 1 March - Singapore Airlines (SIA) and the Air Line Pilots Association of Singapore (ALPA-S) today signed and sealed their new Collective Agreement (CA). It will be formally lodged to the Industrial Arbitration Court (IAC) following the signing ceremony yesterday.

The CA governs the employment terms and benefits of all ALPA-S pilots who fly the national carrier.

The Points of Agreement (POA) of the CA were formally agreed upon by the two parties earlier on September 8, 2004.

The salient points of the CA are:

- Narrowing the maximum: minimum salary range ratios from about 1.9 to 1.6;

- A greater proportion of the remuneration will be in the form of a variable component linked to productivity;

- Reform the wage structure by introducing a Monthly Variable Component and an Annual Variable Component;

- Increasing productivity by raising the annual limit on flying hours from 900 to 1000 hours;

- Increase in the annual leave from 28 days to between 32 and 36 days.

The agreement is in line with the wage restructuring principles recommended by the Tripartite Committee to link remuneration with productivity and performance.

"We are pleased to have finalized the Collective Agreement after many months of negotiations. We can now move on to tackle the ever-changing aviation challenges that we face. This includes paying close attention to our customers and their needs and ensuring we remain the leading carrier globally," says Captain Mok Hin Choon, President of ALPA-S.

SIA's Chief Executive Officer, Mr Chew Choon Seng, said he was pleased the Agreement had been concluded and welcomed ALPA-S's commitment to meet the challenges ahead.

"The amicable conclusion of this new agreement enhances harmony in the organization and enables SIA to be united in meeting the challenges that all airlines will face with more open and liberal markets, where superior service and price competitiveness will be key success factors," Mr Chew said.

The terms laid out in the CA will apply for a period of three years, after which a new CA will be negotiated.

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