A plane of Singapore Airlines (Photo: thejakartapost)Singapore (VNA) – Singapore Airlines (SIA) will cut 96 percent of its scheduled capacityuntil the end of April as border controls around the world are tightened overthe past days to curb the COVID-19 outbreak.
This decision willresult in the grounding of around 140 out of the total fleet of 147 aircraft ofSIA and its subsidiary SilkAir, amid the greatest challenge the group has facedin its existence, the carrier said in a statement on March 23.
This move comes afterSingapore closes its borders in an effort to prevent the spreading of thepandemic.
SIA said that it isactively taking steps to build up its liquidity and to reduce capital expenditureand operating costs. The salaries of the group’s management have also been cut,with the company's directors also agreeing to a cut in their pays.
The airline's cash balance of 1.57 billion SGD (1.08 billion USD) by the end ofDecember 2019 was nearly 19 percent higher than a year earlier. The airlinewill focus on protecting jobs, Chief Executive Goh Choon Phong said. The grouphad more than 26,500 employees in the financial year that ended in March 2019.
The company hasengaged the unions in talks on further cost-cutting measures.
Until this crisis hit,SIA was the 15th largest airline group in the world, serving around 140destinations in more than 35 countries and territories./.
VNA
