SINGAPORE Airlines , the world's largest carrier by market value, may ask pilots from its cargo arm to take unpaid leave in a bid to cut costs and reduce capacity.

Singapore Air told the Business Times it was already in talks with cargo fleet pilots about using the cost cutting moves as a way to avoid retrenchments.

'The cargo business position is very weak at this point in time and the outlook for 2009 is not good,' Singapore Air spokesman Stephen Forshaw told the Business Times.

Pay cuts and retrenchments could follow if the voluntary unpaid leave scheme failed to reduce costs, Mr Forshaw added. The airline is also looking to park some of its cargo carriers.

Singapore Airlines Cargo has a pool of about 300 pilots.

The airline could not immediately be reached for comment.

Singapore Air filled 67.3 per cent of the space available on its planes for passengers and cargo in November, down from 70.6 per cent a year ago, the airline reported this month. -- REUTERS