Singapore Airlines will be cutting 96% of the capacity that had been originally scheduled up to end-April, given the further tightening of border controls around the world over the last week to stem the Covid-19 outbreak.
This will result in the grounding of around 138 SIA and SilkAir aircraft, out of a total fleet of 147, amid what the carrier 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.
Singapore said it was unclear when it can begin to resume normal services, given the uncertainty as to when the border controls will be lifted.
The resultant collapse in the demand for air travel has led to a significant decline in SIA’s passenger revenues.
Singapore said it is actively taking steps to build up its liquidity, and to reduce capital expenditure and operating costs. These include; ongoing discussions with aircraft manufacturers to defer upcoming aircraft deliveries. If agreed, this will consequently defer payment for those aircraft deliveries;
Singapore also said it has recently drawn on its lines of credits to meet its immediate cash flow requirements and is engaging in discussions with several financial institutions for its future funding requirements.