Singapore Airlines © Nafis Al Sadnan/ Unsplash
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How Singapore Airlines Coped With COVID-19

by Sohail Sawlani

Aviation is one of the hardest hit sectors during COVID-19. As the virus spreads, more lockdowns take place, reducing demand for international travel. Some airlines, such as Singapore Airlines, do not have a domestic market that they can rely on during such times. However, Singapore Airlines is not defunct, and other carriers with a domestic market are no longer operating. Let’s take a look at the ways the airline stays afloat, despite reporting a 96% loss in demand.

What is Singapore Airlines?

Before we move ahead, some of you may be wondering what is Singapore Airlines? As the name suggests, Singapore Airlines is the flag carrier of Singapore, located in South-East Asia. The airline was originally founded as Malayan Airways 74 years ago and currently has a large fleet of 158, travelling to 137 destinations. The airline is well known for their amazing service and was previously the record holder for “the world’s best airline” prior to the COVID-19 pandemic.

Singapore Airlines Airbus A350

Singapore Airlines is one of the best in the world © Andrea Ongaro/ Travel Radar

What Singapore Airlines Did To Reduce Costs:

Singapore Airlines handled the COVID-19 situation rather well, coming up with interesting tactics. Lets take a look at some things they did:

Restaurant [email protected] Changi

A rather interesting idea by Singapore Airlines to raise funds was Restaurant [email protected] Changi, on the 24th and 25th October 2020. The event was a dining experience onboard their newest Airbus A380 jets, where you could select what seat you would like, with prices reaching the hundreds for First Class seats. Meals would be served depending on which class you were seated in and in-flight entertainment was available for all. Singapore Airlines garnered a great amount of funding from this event, since all the seats sold out within around 30 minutes.

I personally have been to this event and it was amazing. It felt good to be in an aircraft again after almost a year. The service by the Cabin Crew was amazing, I would definitely go again.

Business Class on SIA Airbus A380

Business Class on SIA Airbus A380 © Singapore Airlines

Inside Singapore Airlines

Inside Singapore Airlines was a detailed tour of the airlines’ training facilities and a heritage tour. The tour went to the simulator room, makeup room, wine room and many more! All participants were given a free meal redeemable at the canteen and discounts at the Singapore Airlines store. There was also an option to purchase a simulator pass, which costed a very hefty sum, and a Cabin Crew Experience. Singapore Airlines probably made tens of thousands from this event.

Image of Singapore Airlines' Staff Training Room

Singapore Airlines’ Staff Training Room © Singapore Airlines

[email protected]

[email protected] is a program that will send First Class and Business Class meals to your home, so you can enjoy the Singapore Airlines dining experience without even leaving your home! Premium classes meals tend to cost a hefty sum, some reaching up to a $1,000, so the airline are making quite a bit of profit.

Raising Funds From Convertible Bond Issues

The airline raised $850 Million dollars from Convertible Bond Issues, due to strong investor interest. The offer was more than four times oversubscribed and would carry a competitive coupon of 1.625%, and can be converted into ordinary shares at a price of S$5.743.

In May, the airline raised $6.2 billion from convertible bonds.

Image of A Singapore Airlines Airbus A380

Singapore Airlines offered Convertible Bonds © Singapore Airlines

Sale and Leaseback Agreements

Singapore Airlines raised $2 billion dollars from sale and leaseback agreements in early May. The aircraft used for this transaction include: 7 Airbus A350-900s and 4 Boeing 787-10s.

What are your opinions on these events and strategies? Comment below. You can also read more about Singapore Airline’s future here.

 

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