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Singapore Airlines raises $1.5 bn from airplane sale-and-leaseback deals

Singapore Airlines on Monday it had raised about $1.50 billion through sale-and-leaseback deals for 11 of its planes to help bolster liquidity

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Singapore Airlines | airlines

Reuters 

Singapore Airlines
File photo: Singapore Airlines

(Reuters) - Singapore Ltd said on Monday it had raised about S$2 billion ($1.50 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 SE A350-900s and four Boeing Co 787-10s.

Rivals such as Cathay Pacific Airways Ltd and Qantas Airways Ltd 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 COCVID-19 pandemic from a position of strength," Singapore Chief Executive Goh Choon Phong said in a statement.

Singapore said it had access to more than S$2.1 billion of undrawn credit lines and an option to raise up to S$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 passenger travel because of border controls and quarantine measures.

reported a 99.6% decline in passenger numbers in April relative to the prior year.

 

(Reporting by Jamie Freed in Sydney. Editing by Gerry Doyle)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, May 03 2021. 07:36 IST
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