Mr Goh was also asked how long the funds raised will last, especially if the outlook does not improve, and whether the group will consider boosting its reserves.
He replied that SIA will press on with cost-cutting measures and beefing up its finances, even as its rights and convertible bonds issues will put up to S$15 billion at its disposal to cope with the hit from the Covid-19 pandemic. "We were decisive, for example, in implementing wage cuts, varying no-pay leave schemes, deferral of non-essential projects and capitalexpenditure, and these measures will continue for the foreseeable future," he said. SIA is also talking to aircraft manufacturers such as Boeing and Airbus to restructure aircraft deliveries.
On financing, Mr Goh noted that up to S$6.2 billion of additional mandatory convertible bonds may be issued within 15 months of the extraordinary general meeting."This will provide us with additional liquidity if the crisis extends for a prolonged period," he said. But the national carrier has also been working with banks for additional facilities, and will continue to explore other sources of funding, including secured financing, and the sales and leaseback of aircraft, he added.For daily updates on weekdays and specially selected content for the weekend. Subscribe to
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