Singapore Airlines revises aircraft delivery schedule with Airbus and Boeing

SINGAPORE Airlines (SIA) on Tuesday said it has reached agreements with Airbus and Boeing to revise its aircraft-delivery schedule.

This will result in some of the aircraft in the group's order book being delivered over a longer period than originally contracted, with the delivery stream spread out beyond the immediate five years.

SIA will thus defer more than S$4 billion in capital expenditure (capex) between FY20/21 and FY22/23 to later years. It would also "recalibrate the rate of introduction of capacity, following the disruption to the demand for air travel as a result of the Covid-19 pandemic", said the group in Tuesday's statement.

Following the agreements, SIA's revised total projected capex for FY20/21 stands at S$3.1 billion, down from S$5.3 billion before. For FY21/22, the revised figure is expected to be S$4 billion, down from the earlier S$5.7 billion.

The revised total projected capex for FY22/23 and FY23/24 have also fallen by S$200 million and S$400 million respectively. In FY24/25, the revised figure is up S$100 million from before, at S$4.3 billion.

SIA chief executive Goh Choon Phong said the agreements are a "key plank" of the group's strategy to navigate the disruptions caused by the pandemic. They will enable SIA to "defer capex and recalibrate the rate at which we add capacity, aligning both the projected recovery trajectory for international air travel".

In addition to spreading out its aircraft delivery system, SIA said it has been able to respond to changes in its projected long-term fleet needs beyond FY25/26, with the conversion of 14 Boeing 787-10 aircraft into 11 additional Boeing 777-9 aircraft.

As at Feb 9, SIA's order book consists of 50 Airbus aircraft, as well as 82 Boeing aircraft.