Singapore Airlines Defers Over $4 Billion in CAPEX on Airbus and Boeing Aircraft Delivery Agreements
Singapore Airlines has reached an agreement with Airbus and Boeing to delay aircraft deliveries beyond the originally contracted period, extending the delivery stream beyond the next five years and deferring over $4 billion in CAPEX spending.
On Tuesday (February 9, 2021), Singapore Airlines (SIA) announced that they have reached agreements with Airbus and Boeing to defer new aircraft deliveries for a longer period than originally contracted, with deliveries extended beyond the next five years. The restructuring of the delivery schedules will allow the SIA Group to defer over $4 billion in CAPEX between FY20/21 and FY22/23 to later years. Additionally, Singapore Airlines has changed their long-term fleet projection needs beyond FY25/26 and has converted an order for 14 Boeing 787-10 aircraft to an additional 11 Boeing 777-9s.
In Tuesday’s announcement, Singapore Airlines’ Chief Executive Officer, Goh Choon Phong, said,
“The agreements with Airbus and Boeing are a key plank of our strategy to navigate the disruptions caused by the Covid-19 pandemic. 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 travel. 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 the 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.”
Source: Singapore Airlines