SIA will cut 96% of its capacity
Singapore Airlines (SIA) will cut 96% of its capacity that had been scheduled up to the end of April, said the airline on Monday (Mar 23).
The decision was made after the further tightening of border controls around the world over the last week to stem the COVID-19 outbreak, SIA said in a news release.
About 138 SIA and SilkAir planes, out of a total fleet of 147, will be grounded as a result. Scoot, the company's low-cost unit, will suspend "most of its network" and will ground all but 2 of its 49 planes.
This comes amid the "greatest challenge that the SIA Group has faced in its existence", the company said.
"It is unclear when the SIA Group can begin to resume normal services, given the uncertainty as to when the stringent border controls will be lifted," it said.
"The resultant collapse in the demand for air travel has led to a significant decline in SIA’s passenger revenues."
Over the last few days, the SIA Group has drawn on its lines of credits to meet its immediate cash flow requirements, it said, adding that it is in discussions with several financial institutions on its future funding requirements.
Source: Channel News Asia