Singapore, March 24, 2020 — cyberinktimes.com — A total of 185 out of 196 aircrafts of the Singapore Airlines (SIA) will be grounded amid the intensified border controls worldwide in efforts to stem out the coronavirus pandemic. This global measure has
prompted the country’s flag carrier airline to slash 96% of its capacity that had
been originally scheduled up to the end of April. “The resultant collapse
in the demand for air travel has led to a significant decline in SIA’s
passenger revenues,” SIA said in a statement.
Among the aircrafts that will
be grounded are Airbus SE A380s and Boeing Co. 787s. SIA’s low-cost unit, Scoot, will also ground
49 planes and will suspend most of its networks. The SIA Group has earlier taken
measures to meet its immediate cash flow requirements.
It is now in close
coordination with aircraft manufacturers to defer deliveries and payments. “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,” the company explained. SIA considers the coronavirus
crisis as the greatest challenge that they have ever faced in its existence.
Last month, the company cut
the salaries of its managers and board of directors and implemented a voluntary
no-pay leave scheme for its employees. The SIA group is the latest
among the airlines worldwide that have resorted to capacity cuts due to the
worsening impact of the COVID-19 which has now infected more than 330,000
people.
According to
the International Air Transport Association, the travel industry will
need government assistance and bailout measures of around $200
billion to recover.
