SIA defers $4 billion in capital expenditure on aircraft delivery agreements
SINGAPORE -- The Singapore Airlines (SIA) Group has reached agreements with Airbus and Boeing to revise its aircraft delivery schedule. Some aircraft in SIA's order book will be delivered over a longer period than originally contracted, with the delivery stream spread out beyond the immediate five years.
SIA said this would enable the Group to defer more than $4 billion of capital expenditure between FY20/21 and FY22/23 to later years. It would also recalibrate the rate of introduction of capacity, following disruption to demand for air travel as a result of the COVID-19 pandemic.
In addition to spreading out its aircraft delivery stream, SIA had been able to respond to changes in its projected long-term fleet needs beyond FY25/26, with the conversion of 14 Boeing 787-10 aircraft into 11 additional Boeing 777-9 aircraft, the airline added.
"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," SIA's CEO, Goh Choon Phong, said.