Singapore Airlines (SIA) and its pilots union are taking their salary dispute to the country's Industrial Arbitration Court (IAC), the company confirmed.

The dispute involves the parent airline, the world's second-largest carrier by market value, and its subsidiaries, SIA Cargo and regional carrier SilkAir.

"SIA, SilkAir and SIA Cargo have been in discussions with their respective ALPA-S (union) branches regarding the annual service increment. As the cases will be heard at the IAC, it would not be appropriate for us to provide any further comment," SIA spokesman Nicholas Ionides said in an email to Reuters.

The hearing date for SIA Cargo has been set for July 8 and a date in August set for the pilots of the parent airline, the Straits Times newspaper reported.

However the newspaper said the issue involving SilkAir pilots has been resolved after management and pilots struck a deal following a meeting at the Manpower Ministry.

The president of the Airline Pilots Association of Singapore (ALPA-S), P. James, confirmed that the issue involving SilkAir pilots has been resolved and said he hoped a similar out-of-court settlement could be reached for SIA and SIA Cargo.

SilkAir has agreed to raise the pay of its captains by between S$340 ($273.73) and S$360 a month and by S$225 for first officers. They will also receive a lump-sum payment for the back-dated amount owed and their pay adjusted accordingly.

Airlines around the world have frozen salaries or cut pay, cut headcounts and grounded aircraft to survive the global financial crisis that started in 2008.

SIA narrowly avoided reporting its first ever full-year loss for the 2009/2010 financial year. However its net profit unexpectedly fell in the fourth quarter due to soaring jet fuel prices and it warned of short-term weakness in its load factor. (Reuters)