Singapore Airlines Cuts 96 Percent of Capacity

A Singapore Airlines A350 performing the inaugural flight from Seattle. (Photo: AirlineGeeks | Katie Bailey)

[ Airlines ]March 25, 2020 3:36 pm ET

By Will Lee

Just days after Emirates halted its scheduled flights, Singapore Airlines has made a similar decision amid the coronavirus outbreak.

In response to the significant drop in travel demand, SIA Group has announced that Singapore Airlines and Silk Air will slash 96 percent of their capacity. Earlier, Choon-Phong Goh, CEO of the airline said, “We have lost a large amount of our traffic in a very short time.” Goh has taken a 15 percent cut in his salary and other senior management members have taken a 10 to 12 percent salary cut.

The new schedule will result in the grounding of around 138 aircraft, out of a group fleet of 147. In addition, Scoot, SIA’s low-cost carrier will suspend most of its network as well. 47 out of its 49 aircraft will be grounded.

With no end in sight for the virus outbreak, the airline has no schedule to resume its regular services. The group admitted the current moment is “The greatest challenge that the SIA Group has faced in its existence.”

According to the latest announcement, Singapore Airlines will cut its operational costs. Moreover, the group is discussing with aircraft manufactures to delay upcoming aircraft deliveries and payment. According to its website, Singapore Airlines signed a firm order with Boeing for 20 777-9 and 19 787-10 aircraft in 2017. The new aircraft were expected to be delivered in 2021/22 and 2020/21 financial year respectively.

In addition, Singapore is seeing a rise in confirmed COVID-19 cases in the city. The government prohibits foreigners to enter or transit in Singapore currently and tougher policies could negatively affect the struggling airline.