Singapore Airlines raises over USD 540m by securing a350s, 787s

- A Monitor Desk Report 29 Jul, 2020 | 846 Views|-+
Dhaka: Singapore Airlines announced that it raised USD 542 million worth of long-term loans by securing some Airbus A350-900s and Boeing 787-10s in a move to further shore up the airline’s liquidity position and tackle the current crisis following the coronavirus pandemic.

Singapore Airlines has raised a total of USD 1.19 billion in secured financing since the start of the financial year 2020/2021 starting April 2020.

The carrier has raised a total of USD 7.96 billion in liquidity since the start of the financial year 2020/2021. USD 6.36 billion came from the airline’s successful rights issue, USD 1.19 billion came from secured financing, and USD 361 million came from new lines of credit and a short-term unsecured loan.

Singapore Airlines also renewed its lines of credit that were due to mature in 2020. With these new committed lines of credit, the airline can continue to access USD 1.52 billion in committed liquidity.

Moreover, up to July 2021, Singapore Airlines retains the option to raise USD 4.48 billion in convertible bonds, if necessary. Even with all this, the airline is going to explore means to shore up liquidity. With the current crisis highlighting the unpredictability of passenger revenue, airlines are looking to secure as much cash as possible.

Singapore Airlines is working on renewing its fleet with the latest generation of aircraft. This includes the Airbus A350-900 and Boeing 787-10s. The A350s are doing many long-haul and regional operations, including Milan, Tokyo, Bangkok, Seattle, and others while the Boeing 787-10s fly off to regional destinations, including Bali, New Delhi, Hong Kong, and Shanghai, among others.

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