Singapore Airlines Raises $7.2 Billion In New Liquidity

Announced today, Singapore Airlines has said that it has managed to raise $7.2 billion in new equity through the company’s recent rights issue. Along with its new liquidity, the Changi Airport-based national flag carrier of Singapore has built up a mix of secured and unsecured credit facilities. With its new cash and credit in place, the Star Alliance member airline is well prepared to tackle the coronavirus pandemic’s fallout.

Singapore Airlines A350 Getty
Singapore Airlines has the cash and credit to survive. Photo: Getty Images

In its statement, the Asian full-service airline said that it secured $6.2 billion through a successful rights issue on June 5. On top of this, a further $646 million was raised through long-term loans on some of Singapore Airlines Boeing 787-10 and Airbus A350-900 aircraft.

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Singapore Airlines has committed lines of credit

In addition to the money already mentioned, Singapore Airlines has arranged new committed lines of credit and short term unsecured loans with several banks. These new credit facilities will give Singapore Airlines more than $359 million in available funds.

Separately to the money raised in the rights issue and the new credit facilities, lines of credit due to mature this year have been extended to 2021. By doing this, Singapore Airlines now has more than $1.22 billion in liquidity. 

Singapore Airlines can raise more money if necessary

Along with announcing its war chest to battle the COVID-19 fallout, Singapore Airlines said it would explore additional means of raising cash. Between now and July 2021, Singapore Airlines says that it will retain the option of raising a further $4.45 billion in mandatory convertible bonds if necessary.

Singapore Airlines can raise more cash if it needs to. Photo: Getty Images

When speaking about the Singapore Airlines financial situation, Chief Executive Goh Choon Phong said. 

“We are grateful for the strong support of our shareholders for our successful rights issue, which has secured the company’s future amid an unprecedented global health and economic crisis. We are also grateful to our relationship banks for their support in extending additional secured and unsecured loans, as well as committed lines of credit. SIA will remain steadfast and agile during this period of great uncertainty, and continue to act nimbly in responding to the evolving market conditions.” 

New coronavirus saftey meaures

Singapore Airlines also announced yesterday that they would be providing all passengers with care kits that contained a face mask, hand sanitizer, and anti-bacterial wipes. All inflight literature has been removed from every aircraft but is still available from the e-Library on Singapore Airlines mobile app.

All cabin crew will now wear surgical masks and eye goggles when interacting with customers during flights. On long-haul flights, catering options have been whittled down while passengers on flights within Asia will receive no meal service. Passengers on flights to mainland China will be offered a snack bag. 

Cleaning plane
Singapore Airlines planes will be disinfected before each flight. Photo: Getty Images

All Singapore Airlines aircraft will receive a mandatory deep cleaning before each flight that includes the wiping down of all hard surfaces and the replacement of headrest covers and bedding. All Singapore Airlines aircraft are equipped with HEPA filters that remove 99.9% of airborne particles. 

It would appear as though Singapore Airlines is well placed to get through the coronavirus crisis, unlike some airlines who will ultimately fail. Which airlines do you think might not survive? Please let us know in the comments section.