MIAMI – Singapore Airlines (SQ) on July 23, 2020, announced its success to raise an additional S$750m through a long term loan to ensure its orders.

Among this additional S$750m (US$545,47m), SQ ensures for the FY2020/21 the final amount of S$1.65bn (US$1,19bn).

With this final amount of Secured financing loans, the Singaporean carrier will now be able to continue its operations without significant disruption.

Moreover, SQ’s order list includes 19 Airbus A350-900 and 29 Boeing 787-10 aircraft in due.

Thanks to this loan, the SQ’s orders are now safe and the carrier can continue without too many disruptions.

The total liquidity raised during the same period now stands at approximately S$11bn.

Singapore Airlines A350-900ULR. Photo: Staff

Singapore Airlines Commit Lines

Separately, all existing commit lines of credit that are due to mature during the course of 2020 have been renewed until 2021 or later.

Together with the new committed lines of credit, this ensures continued access to more than S$2.1bn in committed liquidity.

For the period up to July 2021, the Company also retains the option to raise up to S$6.2bn.

Moreover, SQ is thinking of mandatory convertible bonds that would provide further liquidity if necessary.

Singapore Airlines Boeing 777-300ER 9V-SWN. Photo: Staff

Singapore Airlines Forecast For The Next Future

The pandemic has devastated the aviation sector worldwide.

Travel restrictions introduced to combat the spread of the virus wiped out demand for air travel, with experts saying that mass travel at last year’s level is unlikely to return in the next few years.

Singapore Airlines is operating at about 6% of its scheduled capacity in July.

This will reach 7% in August, depending also on the restrictions applied by the Local Governments.