Singapore Airlines is examining its option to sell and leaseback some aircraft in a bid to raise some cash. A recent report in Forbes indicates that the airline is seeking some flexibility with its fleet. With most of its aircraft owned outright, this move would give Singapore Airlines much needed cash without adding too much to overall long-term costs.
A potential source of much-needed cash
Singapore Airlines has a fleet of over 130 aircraft. Another 70+ aircraft operate for its subsidiaries, SilkAir and Scoot. Of this fleet, the Singapore Airlines Group owns most aircraft outright. Older leased aircraft are starting to make their way out in favor of newer aircraft.
The Boeing 787-10 and Airbus A350-900, and future Boeing 777X, will help replace planes like the Airbus A330 and older Boeing 777s. These newer, next-generation planes are more fuel-efficient and give Singapore Airlines a lot more flexibility.
Since most aircraft are owned outright by Singapore Airlines, it makes sense for the carrier to consider selling its aircraft and leasing them from their new owners. The Asian carrier could partner with a leasing company for a deal on a few planes. This would give Singapore Airlines some much-needed cash to tide itself over, although it would raise the airline’s expenses in the long-term