Singapore Airlines has raised around S$19 billion in funding to help the carrier deal with the global lockdown caused by the novel coronavirus, media reports said.
Temasek, which is Singapore Airlines’ biggest shareholder, revealed that it would underwrite the sale of shares and convertible bonds for up to S$15 billion to help the carrier fight the coronavirus.
The additional S$4 billion would be secured in the form of a loan by the carrier from DBS Bank.
Temasek International Chief Executive Dilhan Pillay Sandrasegara told the media, “This transaction will not only tide SIA (Singapore Airlines) over a short term financial liquidity challenge, but will position it for growth beyond the coronavirus pandemic. The delivery of a new generation aircraft over the next few years will provide better fuel efficiencies as well as meet its capacity expansion strategy.”
Last week, Singapore Airlines revealed that it will cut 96 percent of its scheduled capacity until the end of April due to tightened border control measures around the world over the past week to curb the spread of the coronavirus ( Covid-19) outbreak.
The carrier further revealed that it has drawn on its credit lines in the last few days to meet immediate cash flow requirements. It is offering travel waivers for affected passengers and has updated its frequent flyer policies.
Recently, the International Air Transport Association has called on the governments of 18 Asia-Pacific countries including Singapore for emergency support for airlines as they fight for survival due to the Covid-19 crisis.
In its earlier reports, the IATA revealed that airlines in the Asia-Pacific could lose around $29 billion in revenue, however, the number is expected to rise significantly.
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