SINGAPORE: The state of relations between the management and unions of Singapore Airlines (SIA) over the last two years has been stable and cordial.

In an interview with Channel NewsAsia, SIA chairman Stephen Lee said there is now better communication as both sides have put in more efforts to strengthen the relationship.

Singapore's top leaders, including Minister Mentor Lee Kuan Yew, have also met with representatives from the management and unions of SIA to help iron out differences between them.

SIA's management now meets the union leaders more often, said Mr Lee.

"We are lucky that we have capable union leaders in place, therefore they can represent the ground well and represent the ground issues. On the management side, with better understanding and more even keel relationship, we are in a better position to discuss the more difficult issues."

He added that this year, with tight labour and high inflation, it will be challenging.

The aerospace sector in the region is growing very fast. For instance, many Asian airlines have aggressive expansion plans.

Mr Lee pointed out: "A significant portion of the new planes that will be delivered over the next five years would be in Asia. And many Asian airlines have aggressive expansion plans, and this will exacerbate the availability of trained people."

So he believes the demand for both pilots and engineers would grow very rapidly.

"In the area of pilots, we must position ourselves as the employer of choice and we continue to provide up-to-date training, up-to-date techniques. And it helps when SIA is the first to fly the A380... Many pilots aspire to be in the first wave to be trained in the A380, which really represents the future," Mr Lee said.

Turning to competition from budget carriers, Mr Lee noted that in a period of sustained high fuel prices and a possible drop in demand, the aviation industry has already seen casualties with three US airlines folding up within a week - signs that this is very much a weeding-out period, putting pressure on the weaker players. - CNA/ac