Singapore Airlines raises $1.5bn from aircraft sale-and-leaseback deals. Credit: Saif Zaman (আয়ান ) on Unsplash.

Flag carrier Singapore Airlines (SIA) has raised a total of $1.5bn (S$2bn) from sale-and-leaseback transactions arranged by four different parties.

The deals involve 11 aircraft, comprising seven Airbus A350-900s and four Boeing 787-10s.

The transactions with aircraft leasing company Aergo Capital includes one aircraft each of Airbus A350-900 and Boeing 787-10, and with assets management firm Altavair involves four Airbus A350-900s.

Additionally, aircraft lessor EastMerchant / Crianza Aviation deal contains one Airbus A350-900 and two Boeing 787-10s, while investment firm Muzinich and Co involves one Airbus A350-900 one Boeing 787-10.

Singapore Airlines chief executive officer Goh Choon Phong said: “The additional liquidity from these sale-and-leaseback transactions reinforces our ability to navigate the impact of the Covid-19 pandemic from a position of strength.

“We will continue to respond nimbly to the evolving marketing conditions and be ready to capture all possible growth opportunities as we recover from this crisis.”

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The carrier revealed that it has access to more than $1.57bn (S$2.1bn) in committed credit lines, and an option to raise up to $4.6bn (S$6.2bn) in additional mandatory convertible bonds prior to its Annual General Meeting scheduled to take place in July 2021.

Including these latest deals, SIA raised approximately $11.5bn (S$15.4bn) in fresh liquidity since 1 April 2020.

The carrier will continue to focus on raising additional liquidity depending on requirements.

In March, the carrier’s overall passenger carriage measured in revenue passenger-kilometres dropped by 90.2%. By June 2021, the group’s passenger capacity is expected to be around 27% of pre-Covid levels.