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Updated: 20th February 2009, 1113 hrs
SIA may delay plane deliveries
Singapore Airlines may need to postpone deliveries of new aircraft for the first time in five years as the global recession hurts travel demand.
Hong-Kong based analyst at Mirae Asset Securities, Ryu Je-Hyun, told Bloomberg that SIA may have no choice but to delay deliveries.
He said if SIA grounds planes, they still have to pay depreciation costs and if they take delivery, they have to pay the remaining cost for the aircraft.
CEO Chew Choon Seng will start taking out 17 percent of the airline's fleet starting in April on sinking travel demand.
The airline has 51 planes on order from Airbus and 21 on order from Boeing according to its website.
SIA spokesman Stephen Foreshaw says the carrier hasn't deferred any aircraft deliveries yet, but is examining options to do so.
He said deliveries of new aircraft are not just about growth, but also for fleet renewal purposes.
SIA may delay plane deliveries
Singapore Airlines may need to postpone deliveries of new aircraft for the first time in five years as the global recession hurts travel demand.
Hong-Kong based analyst at Mirae Asset Securities, Ryu Je-Hyun, told Bloomberg that SIA may have no choice but to delay deliveries.
He said if SIA grounds planes, they still have to pay depreciation costs and if they take delivery, they have to pay the remaining cost for the aircraft.
CEO Chew Choon Seng will start taking out 17 percent of the airline's fleet starting in April on sinking travel demand.
The airline has 51 planes on order from Airbus and 21 on order from Boeing according to its website.
SIA spokesman Stephen Foreshaw says the carrier hasn't deferred any aircraft deliveries yet, but is examining options to do so.
He said deliveries of new aircraft are not just about growth, but also for fleet renewal purposes.
