Singapore Airlines to Ground 138 of 147 Aircraft; Scoot to Ground 47 of 49 Aircraft

Singapore Airlines has confirmed plans to cut 96% of the capacity that had been originally scheduled up to end-April.

This will result in the grounding of around 138 SIA and SilkAir aircraft, out of a total fleet of 147, amid what the company has described as “the greatest challenge that the SIA group has faced in its existence”.

The group’s low-cost unit Scoot will also suspend most of its network, resulting in the grounding of 47 of its fleet of 49 aircraft.

In a statement issued on Monday, the company admitted that it is unclear when the company will be able to resume normal services, given the uncertainty as to when the stringent border controls will be lifted.

SIA has said it will continue to aggressively pursue all measures to address the impact of the COVID19 outbreak on the company. These include:

• ongoing discussions with aircraft manufacturers to defer upcoming aircraft deliveries. If agreed, this will consequently defer payment for those aircraft deliveries;

• salary cuts for the SIA Group’s management with the company’s Directors also agreeing to a cut in their fees, and a voluntary no-pay leave scheme up to certain management positions. Given the worsening situation, the unions have been engaged on the additional cost-cutting measures that are needed and SIA says more steps will be taken imminently; and

• over the last few days, the SIA Group has drawn on its lines of credits to meet its immediate cash flow requirements. The SIA Group has said that it is engaging in discussions with several financial institutions for its future funding requirements.

More on this story to come...

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