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You are here: Home / News / Singapore Airlines prepares to cut 96% of its network

Singapore Airlines prepares to cut 96% of its network

22/03/2020 by Kevincm

With Singapore closing its borders to short term visitors, its national airline – Singapore Airlines, SilkAir and Scoot are preparing to implement 96% cuts across its network.

Singapore Airlines A380 at Singapore Changi Airport - Image, Economy Class and Beyond

The changes will run through to the end of April, as governments around the world continue to close borders or tighten them to the point to allow citizens to return to their home countries during the Covid-19/Human Malware/Coronavirus outbreak.

However, the airline notes that it unclear when it can begin to resume normal services, given the uncertainty as to when the stringent border controls will be lifted

Both the Singapore Airlines and SilkAir fleet will be hit – with 138 out of the 147 aircraft grounded – with nine aircraft remain flying.

Meanwhile, the low-cost unit Scoot will enact similar measures, with 47 out of 49 aircraft grounded… leaving a grand total of two aircraft flying.

Scoot Boeing 787 Dreamliner - Image, Economy Class and Beyond
Scoot Boeing 787 Dreamliner – Image, Economy Class and Beyond

Singapore Airlines calls the threat of Covid-19/Human Malware/Coronavirus and the closing of borders “the greatest challenge that the SIA Group has faced in its existence.”

It blames the collapse in the demand for air travel has led to a significant decline in groups passenger revenues.

The group is following the usual steps to increase liquidity and reduce expenditures, including deferring aircraft deliveries (along with the cost savings that would bring), salary cuts for the management, unpaid leave, and so on. The airline is also pulling its credit lines to address cashflow requirements.

 


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