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Singapore Airlines defers over $4 bn on fleet delivery schedule

The development is expected to recalibrate the rate of introduction of capacity following the impacts caused by the pandemic towards air travel

Singapore Airlines (SIA) has signed agreements with the world’s two largest aerospace manufacturers Airbus and Boeing to defer over $4 billion in capital expenditure for the delivery of aircraft.

It is reported that the airlines’ record a 97 percent y-o-y slump in passenger flight operations last year compared to 2019 due to the pandemic outbreak that has walloped the global aviation segment.  The new agreements for SIA have revised its order book to be completed over a longer period than originally contracted, beyond the immediate five years period.

The development is expected to recalibrate the rate of introduction of capacity following the impacts caused by the pandemic towards air travel.  Furthermore, SIA has converted its 14 Boeing 787-10 aircraft into 11 additional Boeing 777-9 aircraft in response to the long-term fleet needs,

SIA is currently operating about 64 aircrafts, out of which 24 passenger carrier have been used for cargo operations.

SIA’s CEO Goh Choon Phong, told the media, “They allow us to defer capital expenditure and recalibrate the rate at which we add capacity, aligning both with the projected recovery trajectory for international air travel. At the same time, they retain our commitment to operating new generation aircraft that will enable the SIA group to continue offering greater comfort and innovative products to customers, further drive operating efficiency, and support ongoing efforts to materially lower our carbon emissions. These will help to cement our leadership position in the airline industry as it recovers from the pandemic.”

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