SINGAPORE, Feb 9 — The Singapore Airlines (SIA) Group has reached agreements with Airbus and Boeing to revise its aircraft delivery schedule, thus enabling it to defer more than S$4 billion of capital expenditure to later years.
Some of the aircraft in the SIA Group’s order book will be delivered over a longer period than originally contracted, with the delivery stream spread out beyond the immediate five years.
Chief executive officer Goh Choon Phong said the agreements with Airbus and Boeing are a key plank of the group’s 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,” he said in a statement.
The deal would also recalibrate the rate of introduction of capacity, post disruption to demand for air travel as a result of the pandemic.
In addition to spreading out its aircraft delivery stream, SIA said it has been able to respond to changes in its projected long-term fleet needs beyond financial year ending March 31, 2026 with the conversion of 14 Boeing 787-10 aircraft into 11 additional Boeing 777-9 aircraft.
The revised SIA Group order book as of today consists of 35 Airbus A320 Family; 15 Airbus A350-900; 31 Boeing 737-8; 20 Boeing 787 Family; and 31 Boeing 777-9. — Bernama
