The Singapore Airlines Group (SAG) has added an unexpected S$750 million ($540 million) from long-term loans supported by an undisclosed number of Airbus A350-900 aircraft and Boeing 787-10.
Data from fleets indicate that mainline airline Singapore International Airlines owns and operates 48 A350-900s and 15 787-10s within the in-service and stored fleet of SIA Group.
Along with the new transactions, since the start of the financial year ending 31 March 2021, the company has received a total of S$1.65 billion from secured funding, it says.
SIA Group raised S$8.8 billion from a capital contribution concluded on June 5, and much more over S$500 million with existing extended credit lines structured as well as a short-term unsecured loan by financial institutions during that time.
The gross volatility amounts to approximately S$11 billion.
SIA Group has separately extended current dedicated lines of credit, set to maturity in 2020, to 2021 or later. Along with the latest lines of credit, it has maintained access to dedicated funding worth more than S$2.1 billion.
SIA Group said at a previous update on June 8 it raised S$900 million from long-term loans, mostly supported against an undisclosed number of A350-900 aircraft and 787-10 aircraft. It reported access to the liquidity of S$1.7 billion via dedicated lines of credit.
The group reinforces it will have the opportunity to raise an extra S$6.2 billion in compulsory debt securities as part of the same investment program that completed the issue of rights in June.
It states: “In this time of high volatility, Singapore International Airlines (SIA) will continue to explore additional ways of reinforcing liquidity where possible.”
The pandemic has ruined the worldwide aviation market. Flight limitations imposed to battle the transmission of the infection swept out the airline industry, with analysts predicting that last year’s pace of mass travel is unlikely to come back in the coming years.