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On 7 April 2004, the CEO of Singapore Airlines (SIA), Chew Choon Seng, announced that the company was confident it would meet its profit target of S$600 million for the fiscal year ending 31 March 2005. As promised to SIA staff earlier in the financial year, SIA would make a one-off payment to employees to compensate for wage cuts made earlier in the fiscal year 2002-2003. This was in addition to a 15 percent one-off bonus to be granted to all employees. At the same press conference, Chew also asserted that the company might have to cut costs by up to 20 percent or S$1.6 billion a year in order to remain economically viable in the long term. He saw the cut as necessary in order to meet the airline''s target of eight percent return on capital employed (ROCE). However, in the best- case scenario, the cut could be 10 percent of S$800 million per year. He added that failure to meet this ROCE target did not imply that SIA was making losses, as the target was simply a measure of whether the airline provided an adequate ROCE compared with other alternative investments.