Singapore Airlines (SIA) announced (23-Mar-2020) it will cut capacity by 96% in response to the coronavirus outbreak. SIA and SilkAir will ground 138 out of 147 aircraft and Scoot will suspend most of its network and ground 47 of its 49 aircraft. The company is implementing the following to mitigate the financial impacts of the outbreak:
- Ongoing discussions with aircraft manufacturers to defer upcoming aircraft deliveries. If agreed, this will consequently defer payment for those aircraft deliveries;
- Salary cuts for SIA Group's management with the company's directors also agreeing to a cut in their fees, and a voluntary no pay leave scheme up to certain management positions;
- Unions have been engaged on additional cost cutting measures that are needed and more steps will be taken imminently;
- SIA Group has drawn on its lines of credits to meet immediate cash flow requirements and is engaging in discussions with several financial institutions for its future funding requirements. [more - original PR]