S$15b cash call gives SIA a shot at surviving Covid-19

Singapore

SINGAPORE Airlines' massive cash call of up to S$15 billion - backed by Temasek Holdings' financial heft - will boost the national carrier's stamina to endure the Covid-19 pandemic that has decimated global air travel. The proposed exercise, involving a rights issue of new shares and convertible bonds, will also give it a shot at restoring itself when the crisis ends.

Brendan Sobie, independent analyst and founder of Sobie Aviation, puts it succinctly: "SIA is now in a very enviable position to be able to wait until the international market recovers, whenever that is".