Singapore Airlines has completed sale-and-leaseback transactions for 11 widebody aircraft, comprising seven A350-900s and four B787-10s, raising S$2b or US$1.5b in the process.
Arranging the leases are Aergo Capital with one apiece; Altavair for four A350-900s; EastMerchant/Crianza Aviation for one A350-9 and two B787-10s; and Muzinic and Co. Limited with one apiece.
The flag carrier has raised around S$15.4b in fresh liquidity since April last year, which includes S$8.8b from a rights issue, S$2.1b from secured financing, S$2b via convertible bonds and notes, and more than S$500m through new lines of credit and a short-term unsecured loan.
SIA says it still has access to more than S$2.1b in credit lines, along with an option to raise S$6.2b in mandatory convertible bonds before the company’s annual meeting in July.
Mr Goh Choon Phong, SIA chief said the additional liquidity from the sale-and-leaseback deals will reinforce its ability to navigate Covid-19’s impact from a stronger financial position.
The airline currently has a young fleet of 55 A350 XWBs, with 2 parked, whilst its fleet of B787 Dreamliners stand at 15, which are all in service. The average life of both widebody types stands at 2.7 years and 2.6 years, respectively, according to data from Planespotters.net