Singapore Airlines Group announced today (09 February) that the group has reached agreements with aircraft manufacturers Boeing and Airbus to revise its delivery schedule. This revision would mean that the schedule would see aircraft delivery now spread beyond the next 5 years
This would also translate to a reduction in Capital expenditure (CAPEX), to be exact the revised aircraft delivery schedule would mean that over $4 billion of CAPEX will be deferred between FY20/21 and FY22/23 to later years.
Singapore Airlines Group revised order book as at 09 Feb 2021
The decision to delay the schedule of aircraft delivery doesn’t come as a surprise with the impacts of the COVID-19 Pandemic severely impacting air travel and with demand for air travel still low the need for additional capacity at this point doesn’t make sense given the poor operating environment.
For the quarter ending December 2020, the group stated that they had parked 123 aircraft and recorded a net loss of $142 million.
CEO of Singapore Airlines, Goh Choon Phong stated, “The agreements with Airbus and Boeing are a key plank of our strategy to navigate the disruptions caused by the Covid-19 pandemic. 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,” further adding that “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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