SIA launching foundation to help students in need, grow aviation industry

SINGAPORE - To help people and communities in need and spur growth in Singapore’s aviation industry, national carrier Singapore Airlines (SIA) will be launching the Singapore Airlines Foundation.

SIA said on May 17 it will contribute $30 million to an endowment fund and the resulting income earned will be used to fund the foundation. An endowment fund refers to a portfolio of investments with the initial capital typically derived from donations.

The foundation will be established in the near future as a company limited by guarantee.

A company limited by guarantee is usually formed as a non-profit entity that has some public or national interest.

The foundation will be launching two programmes.

One is the Youth Uplift Programme, which is available to students in need and is intended to prepare them for careers, especially in the aviation industry.

Financial assistance will be given to eligible Singaporean students from the Institute of Technical Education (ITE), polytechnics or universities.

Up to 20 eligible students per year will receive a bursary of up to $12,000 over the course of their studies for a maximum of four years.

Students will also be given industry experience with a three- to six-month traineeship with SIA Group, access to courses from the Singapore Airlines Academy on topics including effective communication and building self-confidence, and mentorship from SIA employees, who will offer career advice and share their own experiences.

Applications for the programme will open in July.

Applicants must be Singaporeans pursuing Nitec and Higher Nitec courses at ITE, or any discipline except architecture, law and healthcare at a polytechnic or university in Singapore.

They should not hold any other bursaries or scholarships.

An applicant’s per capita income should also not exceed $3,000, or the total household income should not surpass $10,000.

The second is the Youth Outreach Programme, which aims to spark an interest in the aviation industry among upper secondary and junior college students.

The programme gives eligible students a five-day hands-on behind-the-scenes experience with SIA Group during the school holidays. It will give them a chance to meet and learn from teams in the group and gain insight into the roles that keep the airline running.

In response to questions from The Straits Times on how many schools the foundation will work with for a start and which schools these are, SIA said more details will be revealed in due course. 

Mr Goh Choon Phong, chief executive of SIA, said the foundation’s programmes will “support those in need, inspire and empower the next generation of aviation professionals, and help catalyse the long-term growth of Singapore’s air hub”.

The announcement of the foundation came two days after SIA posted

a record full-year net profit on May 15

and proposed a higher dividend payout for shareholders and a fatter bonus for staff.

But analysts have

noted the challenges ahead

, and projected a fall in operating profit owing to pricing and cost pressures.

They expect yields – a proxy for airfares – to ease as the air travel industry normalises and rivals lower fares to fill seats. Costs are expected to rise with more flight restorations and new carriers launching services.