Singapore Airlines Group to operate 11 out of 194 aircraft
Singapore Airlines (SIA1) (SINGY) (SIA) announced that it would cut up to 96% of its capacity until the end of April 2020 due to the breakout of COVID-19 and the subsequent travel restrictions imposed by governments worldwide.
The Singapore Changi Airport (SIN) company group, which also includes SilkAir and the low-cost carrier Scoot, will only operate 11 aircraft out of 194 total in its fleet, with Singapore Airlines (SIA1) (SINGY) and SilkAir operating nine out of 147 combined, while Scoot will operate two out of 47 jets.
While the measures to soften the impact of the outbreak were to diversify Singapore Airlines’ (SIA1) (SINGY) network, including setting up Scoot on some of the routes to appeal to a wider range of market segments, the fact that the airline group has no domestic network proves it difficult to navigate travel restrictions in international markets.
“The resultant collapse in the demand for air travel has led to a significant decline in SIA’s passenger revenues,” highlighted the company. It added further that it is still unclear when the airline can resume normal services due to the uncertainty of the current situation, including the lifting of travel restrictions around the world.
The carrier is in active discussions with aircraft manufacturers to defer the deliveries of their products, which would allow deferring payments on those aircraft. Currently, the company has 150 jets in order books of Airbus and Boeing, ranging from the Airbus A320neo, Boeing 737 MAX to the Airbus A350 and the Boeing 777X.
In addition, the group’s management and company’s directors agreed to take a pay cut, with a voluntary unpaid leave scheme in place offered to management. Singapore Airlines (SIA1) (SINGY) is also in contact with its unions to discuss additional “cost-cutting measures that are needed.”
SIA is also engaged in discussions with several financial institutions to ensure its financial liquidity going into the future.
Aviation’s biggest challenge: COVID-19 vaccine distribution
With various COVID-19 vaccines slowly getting approval across the globe, the real challenge lies ahead of airline and th...
Russian authorities ban Cyprus Airways flights
Cyprus Airways new weekly Moscow-bound flights will not be on sale after the Russian authorities placed restrictions on...
Breeze Airways’ unusual requirements for flight attendants
Breeze Airways, positioning itself as the world’s nicest airline, requires its future cabin crew members to enroll...
Air India pilot unions demand state’s interference over wage cuts
As the aviation sector in India is set on the path of recovery, austerity measures are being scaled back. However, the A...
Rise and fall of most connected cities: top 10 of 2020
The ongoing pandemic reordered cities’ air connectivity rankings. While declined traffic affects all markets, ther...