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COVID-19: Singapore Airlines slashes 96% of capacity, grounds most planes

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SINGAPORE: Singapore Airlines (SIA) will cut 96 per cent of its capacity that had been scheduled up to the end of April, said the airline on Monday (Mar 23).

The decision was made after the further tightening of border controls around the world over the last week to stem the COVID-19 outbreak, SIA said in a news release.

About 138 SIA and SilkAir planes, out of a total fleet of 147, will be grounded as a result. Scoot, the company's low-cost unit, will suspend "most of its network" and will ground all but two of its 49 planes.

This comes amid the "greatest challenge that the SIA Group has faced in its existence", the company said.

"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," it said.

"The resultant collapse in the demand for air travel has led to a significant decline in SIA’s passenger revenues."

https://www.channelnewsasia.com/news/business/covid-19-singapore-airlines-suspend-flights-coronavirus-12566248?cid=FBcna

bad year for aviation

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Supersonic

if SQ gg, den the rest of the World's airlines confirm gone case. 

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Supersonic

Yeah. Big companies such as this with big depreciating assets and a large workforce cant just close shop like small companies.

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Turbocharged

If SIA is unable to sustain a crisis like this, then what happened to its huge profits in the past years? Where's all the money gone to?

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Supersonic
31 minutes ago, Vinceng said:

If SIA is unable to sustain a crisis like this, then what happened to its huge profits in the past years? Where's all the money gone to?

Pay your dividend?

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Turbocharged
28 minutes ago, inlinesix said:

Pay your dividend?

Oh dear - SIA paid whatever profits they had as dividends to shareholders & have nothing left

 

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Twincharged
45 minutes ago, inlinesix said:

Pay your dividend?

Not share buyback? Lol.

SIA's traditional payout ratio is around 50% but depreciation is huge.

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Supersonic
1 hour ago, Vinceng said:

If SIA is unable to sustain a crisis like this, then what happened to its huge profits in the past years? Where's all the money gone to?

Who can sustain a crisis like this? Almost every country implemented restrict travellers measure, ban other people from other countries from entering etc, basically like no people are flying now.

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Turbocharged (edited)

This crisis is causing a lot of damage to businesses and economy than we can imagine.
 

I bet we will be seeing some counties going bankrupt and needing help loans from WTO. 

Edited by Silver_blade
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Supersonic
9 minutes ago, Silver_blade said:

This crisis is causing a lot of damage to businesses and economy than we can imagine.
 

I bet we will be seeing some counties going bankrupt and needing help loans from WTO. 

So we can say the whole world is having economic crisis? Same like the past few economic crisis that we have been through?

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Supersonic
20 minutes ago, Silver_blade said:

This crisis is causing a lot of damage to businesses and economy than we can imagine.
 

 I bet we will be seeing some counties going bankrupt and needing help loans from WTO. 

Could possibly mean the governments cannot afford to pay their liabilities like pensions.  Pensioners are definitely going to suffer this time - They get reduced pensions, they have to work longer before retirement, or worst, they don't get ventilators at the hospitals.  Outcome of the last option unfortunately is the best outcome for governments.  Hope that won't happen in Sg.

 

  

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Turbocharged
5 minutes ago, 13177 said:

So we can say the whole world is having economic crisis? Same like the past few economic crisis that we have been through?

I think it may be a lot worse than the past few economic crisis. The economy was already limping cos of the trade world before the COVID-19 hit the world. 

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Hypersonic
25 minutes ago, Silver_blade said:

This crisis is causing a lot of damage to businesses and economy than we can imagine.
 

I bet we will be seeing some counties going bankrupt and needing help loans from WTO. 

You mean USA?

:grin:

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Hypersonic
15 minutes ago, Volvobrick said:

Could possibly mean the governments cannot afford to pay their liabilities like pensions.  Pensioners are definitely going to suffer this time - They get reduced pensions, they have to work longer before retirement, or worst, they don't get ventilators at the hospitals.  Outcome of the last option unfortunately is the best outcome for governments.  Hope that won't happen in Sg.

 

  

I also think this one is true

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Supersonic
53 minutes ago, Silver_blade said:

This crisis is causing a lot of damage to businesses and economy than we can imagine.
 

I bet we will be seeing some counties going bankrupt and needing help loans from WTO. 

WTO got money to lend meh? Still got people hiu them? Everyone FTA here and FTA there...bloc here bloc there...where’s WTO when Trump and Xi arm wrestling...

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Hypersonic
49 minutes ago, Silver_blade said:

This crisis is causing a lot of damage to businesses and economy than we can imagine.
 

I bet we will be seeing some counties going bankrupt and needing help loans from WTO. 

There's also the forex issue. Emerging markets currency and bond yields shooting up. At a time when u need usd to settle international business demands. Though usa fed is starting currency swap to reduce the problem. 

Its going to be difficult for EM economies to issue debt during such a situationt.

 

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Supersonic
1 hour ago, Voodooman said:

Not share buyback? Lol.

SIA's traditional payout ratio is around 50% but depreciation is huge.

That means 50% still goes to Balance Sheet.

Each plane is about USD100m.  I think SQ plane has useful life of 6 yrs.

 

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Supersonic

I think all eyes are on the super powers, US and China. Our recovery will depend on them. If they join hands and work together we will see results. If Trump is still bent on bashing China, we will suffer.

I'm hoping Trump will be ousted in the re-election to be honest. He's not doing the world a favour. He's always on Twitter yammering on fake news. Worst US leader I have ever come across.

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