SIA will also be running out of cash soon

[LITTLEREDDOT]

SIA raises $2 billion from airplane sale-and-leaseback deals

Singapore Airlines lacks a domestic market and has been hit hard by the virtual halt to international passenger travel.ST PHOTO: KUA CHEE SIONG

May 3, 2021

SINGAPORE (REUTERS) - Singapore Airlines (SIA) said on Monday (May 3) it had raised about $2 billion through sale-and-leaseback deals for 11 of its planes to help bolster liquidity as it grapples with the pandemic-related plunge in travel.
The airline said it would continue to explore other ways to raise liquidity after reaching deals with four parties over seven Airbus A350-900s and four Boeing 787-10s.
Rivals such as Cathay Pacific Airways and Qantas Airways have done similar deals during the pandemic.
"The additional liquidity from these sale-and-leaseback transactions reinforces our ability to navigate the impact of the Covid-19 pandemic from a position of strength," SIA chief executive Goh Choon Phong said in a statement.
SIA said it had access to more than $2.1 billion of undrawn credit lines and an option to raise up to $6.2 billion in convertible bonds before its annual meeting in July 2021.
The airline lacks a domestic market and has been hit hard by the virtual halt to international passenger travel because of border controls and quarantine measures.

SIA reported a 99.6 per cent plunge in passenger numbers in April relative to the prior year.
Its shares were trading at $4.96, down 10 cents or 2 per cent, at 10.21am on Monday, after its latest announcement.

 

[kaninabuchaojibye]

all because of sia
we sinkies got to suffer to borders open to indians
knn
fuck sia

 

[glockman]

Fuck, most profits gone.....it was great when it was $5.70.

 

[birdie69]

Fuck, most profits gone.....it was great when it was $5.70.

The interest payment of the loans and other financing costs itself would bankrupt SIA. It is a miracle that it's stock price could maintain above $3.00.
Asia's fate would end up like NOL

 

[tanwahtiu]

They can start leasing lands to Singapore say $1 /acre for 150 years...

When u are bankrupt u sell yr daughters to be maid....

Looking to screw shareholders with a second rights issue?

Malaysia Airlines parent company says group is running out of cash

Malaysia Airlines plans to negotiate the steep discounts with its lessors via a restructuring plan.PHOTO: REUTERS

SINGAPORE (REUTERS) - Malaysia Aviation Group, the holding company for Malaysia Airlines, said in a letter to lessors the group is unlikely to be able to make payments owed after November unless it receives more funding from state fund Khazanah.

The letter, reviewed by Reuters, follows a request by the troubled carrier for steep discounts on aircraft rentals from its lessors as part of a broad restructuring plan, three sources with knowledge of the matter said.

According to the letter, the aviation group was experiencing "an average monthly operating cash burn of US$84 million (S$114.6 million)", but only had US$88 million in liquidity as of Aug 31 and an additional US$139 million available from Khazanah, its sole shareholder.

"Based on the current run-rate, absent further funding from shareholders, the group will likely be unable to meet its obligations, including payments to lessors, post November 2020," it said.

The letter was sent last month, but the exact date was not immediately clear.

Malaysia Aviation Group and Khazanah had no immediate comment in response to Reuters queries.

Malaysia's national airline has struggled to recover from two tragedies in 2014 - the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.

Khazanah took it private that year as part of a US$1.5 billion restructuring, but efforts to turnaround its business have been further upended by the coronavirus pandemic.

Malaysia Airlines plans to negotiate the steep discounts with its lessors via a restructuring plan it is seeking to implement through a British court process, the sources said, declining to be identified due to the sensitivity of the matter.

In addition to Malaysia Airlines, the holding company group includes other local carriers and entities involved in aircraft leasing and ground handling services.

 

[CPTMiller]

Fuck, most profits gone.....it was great when it was $5.70.

Don't worry mommy cash rich can give SIA

 

[glockman]

The interest payment of the loans and other financing costs itself would bankrupt SIA. It is a miracle that it's stock price could maintain above $3.00.
Asia's fate would end up like NOL

Don't worry mommy cash rich can give SIA

SIA is Singapore, the pride of the pap and LKY's legacy. Die die they won't let it die.

 

[batman1]

Activate their trump card,desptach Gen Ng Yat Chung to SIA IMMEDIATELY NOW !!!

 

[Papsmearer]

How about attacking Batam for more lebensraum? Fuhrer Loong needs more land to kickstart the economy.

That is already been studied in SAF Plans. But with the new generation of scholar genitals and guniang peng kias, it will be a disaster. Better to offer economic incentives and build HDB flats for them. Can still be done, it will be a piece of cake, and can hold on to it for a while. But we will be boycotted at the UN and lots of jihadist will come for us.

 

[Papsmearer]

The Airbus A220 is more fuel efficient and with lower operating costs.

https://en.wikipedia.org/wiki/Airbus_A220

There are used Embraers on the market that they can buy cheap but no used A220

 

[batman1]

If I am not wrong ,the SIA CEO is still collecting his multi-million $ salaries and bonuses.

 

[Papsmearer]

MAS should sell off the 737 and replace it with embraer 190-195. 737 and a320 reminds passengers of being in low cost planes.

MAS losses I think are mostly in the international routes. They need to switch to a regional airline format and then recover themselves before going international. Hence they can cut their long haul fleet by 80% and refocus on domestic and regional routes where they have a cost advantage in labour and fuel. Lots of used CRJs and Embraers for sale. Air Canada retired their entire fleet of Embraer 190. That's 14 aircraft with relatively young ages. AA is also retiring their 31 Embraer 140, a smaller regional jet. In addition, many turbo props are on the used market too, like the ATRs and Q400 and Dash 8. For the Malaysian market, they are perfect to fly on thin routes between smaller towns and cities. Nearby asian routes will open up much sooner then Europe and US routes due to covid.

 

[Papsmearer]

Its overdue that they cut SIA loose.

Taxpayers refuse to allow their savings to be used this way when there is no clear way out of the mess.

For all we know SIA will eventually collapse and all our money down the drain.

Taxpayers where got savings. Its all owned by the PAP

 

[laksaboy]

What happened to SIA's 'cunning plan' of selling ordinary SATS catering food at cutthroat prices? Didn't go too well, eh?

https://www.todayonline.com/8days/e...omy-seat-regular-eat-sias-1st-class-meal-land

 

[mojito]

Don't worry lah. PAP never running out of cash.

 

[Papsmearer]

SIA raises $2 billion from airplane sale-and-leaseback deals

Singapore Airlines lacks a domestic market and has been hit hard by the virtual halt to international passenger travel.ST PHOTO: KUA CHEE SIONG

May 3, 2021

SINGAPORE (REUTERS) - Singapore Airlines (SIA) said on Monday (May 3) it had raised about $2 billion through sale-and-leaseback deals for 11 of its planes to help bolster liquidity as it grapples with the pandemic-related plunge in travel.
The airline said it would continue to explore other ways to raise liquidity after reaching deals with four parties over seven Airbus A350-900s and four Boeing 787-10s.
Rivals such as Cathay Pacific Airways and Qantas Airways have done similar deals during the pandemic.
"The additional liquidity from these sale-and-leaseback transactions reinforces our ability to navigate the impact of the Covid-19 pandemic from a position of strength," SIA chief executive Goh Choon Phong said in a statement.
SIA said it had access to more than $2.1 billion of undrawn credit lines and an option to raise up to $6.2 billion in convertible bonds before its annual meeting in July 2021.
The airline lacks a domestic market and has been hit hard by the virtual halt to international passenger travel because of border controls and quarantine measures.

SIA reported a 99.6 per cent plunge in passenger numbers in April relative to the prior year.
Its shares were trading at $4.96, down 10 cents or 2 per cent, at 10.21am on Monday, after its latest announcement.

I don't know why they did not do a crash cargo conversion on some of their older planes and up their freight business. Its more profitable now then passenger flights.

 

[Eisenhut]

I don't know why they did not do a crash cargo conversion on some of their older planes and up their freight business. Its more profitable now then passenger flights.

I thought they did. It was shown they did in CNA

 

[countryman]

I don't know why they did not do a crash cargo conversion on some of their older planes and up their freight business. Its more profitable now then passenger flights.

I read somewhere they're using the regular planes as cargo planes. The seats are used as cargo space.

 

[Papsmearer]

I read somewhere they're using the regular planes as cargo planes. The seats are used as cargo space.

yeah,but its not as efficient as a cargo conversion. and increased freight volume is here to stay. too many people discovered amazon during the lockdown.

 

[countryman]

yeah,but its not as efficient as a cargo conversion. and increased freight volume is here to stay. too many people discovered amazon during the lockdown.

Understand your point of view but this is not a good option imo. Firstly to tear down the interior of the plane n convert to full cargo plane it will take couple of months @least, a lot of cost n manpower involved. If there's recovery in the pandemic n travelling picks up, they'll need to convert the plane back to a commercial passenger plane. This will take even longer as the installation of seats, kitchen areas n the entertainment system will be much more tedious. Moreover probably everything has to be brand new as the old parts removed previously couldn't be recycled anymore.
All in all, to convert the planes is not a profitable business for the airline.