Singapore Airlines has announced plans to defer about $3.01 billion worth of plane orders from both Airbus and Boeing, a move that seeks to help the airline navigate the disruptions caused by the coronavirus pandemic.
Reuters reports that the airline is further looking to convert 14 of its Boeing 787-10 orders to 11 additional 777-9s to meet its fleet needs beyond the financial year ending in March 2026. The decision to switch some of its Boeing orders to 777-9s boosts the planemaker’s poor-selling 777X programme but adds pressure on the smaller 787, already hit by production problems.
Additionally, the airline will cut capital spending plans by $1.7 billion in the 2020/21 financial year ending 31st March, $1.3 billion in 2021/22, and by a more limited amount in the following three years.
Singapore Airlines last week posted a $107 million net loss in the third quarter as passenger numbers plunged by 97.6% due to the pandemic, though its cargo business held up better given a tight freight market.
Singapore Airlines is the flag carrier of Singapore, with its hub at Singapore Changi Airport. Skytrax has ranked it as the world’s best airline four times, with the airline also topping Travel & Leisure’s best airline rankings for more than 20 years.
The airline ranks among the top 15 carriers worldwide in terms of revenue passenger kilometres and is ranked tenth globally in terms of international passengers carried.