Singapore Airlines Plans to Spend Over US$14 Billion Over Next Five Years

   By Gaurav Raghuvanshi 
 

SINGAPORE--Singapore Airlines Ltd. (C6L.SG) Friday said it plans to spend 18.6 billion Singapore dollars (US$14.3 billion) over the next five years, primarily to buy new planes.

The Singapore flag carrier will spend S$2.95 billion in its next fiscal year starting April 1, according to information provided by the company to Singapore Exchange.

The airline will take delivery of two Airbus Group N.V. (EADSY) A330 jets and three Boeing Co. (BA) B777-300ER planes through March next year. However, its operating fleet will stay unchanged at 105 jets as it will also retire four B777-200s and one A330-300 jet.

Its budget long-haul unit Scoot Pte. will take delivery of two Boeing 787-9 Dreamliner jets and retire two 777-200s, also keeping its fleet constant at six. Regional full service unit SilkAir will get three 737-800s and take out two Airbus jets from its fleet, which will grow to 27 aircraft by March 31, it said.

Singapore Airlines said it has hedged 65.3% of the jet fuel it needs between October and March at an average price of US$116 a barrel. Singapore Airlines said on Thursday that its fuel bill, which accounts for 38% of total costs, eased a bit to S$1.43 billion in the July-to-September quarter from S$1.47 billion in the same quarter last year, due a decline in global crude oil prices.

Write to Gaurav Raghuvanshi at [e-mail]

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