The Singapore Airlines (SIA) Group announced Tuesday (9 February) that it has reached agreements with Airbus and Boeing to defer more than S$4 billion (US$3.01 billion) in aircraft deliveries. The planes on order will be spread out “beyond the immediate five years”, the airline said, which will recalibrate the rate of introduction of capacity following the disruption to the demand for air travel as a result of the COVID-19 pandemic. In addition to spreading out its aircraft delivery stream, SIA has 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 agreements with Airbus and Boeing are a key plank of our strategy to navigate the disruptions caused by the COVID-19 pandemic,” said SIA’s CEO Goh Choon Phong. “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. (The revised order book is below.)
“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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