Singapore Airlines has used its aircraft to raise additional funds. The airline has used some of its Airbus A350s and Boeing 787s as security for a loan. This move further shores up the airline’s liquidity position and strengthens its position to weather the current crisis.
Using aircraft as security
Singapore Airlines announced that it raised S$750 million ($542 million) worth of long-term loans by securing some Airbus A350-900s and Boeing 787-10s. Singapore Airlines has raised a total of S$1.65 billion ($1.19 billion) in secured financing since the start of the financial year 2020/2021. For reference, Singapore Airlines began this financial year in April 2020.
Using aircraft as security is nothing new in the aviation world. Alaska Airlines raised over $1 billion by securing 61 jets earlier this month. Other assets airlines have pledged include airport slots (as JetBlue did) and gates and routes (as American Airlines did).
Aircraft are excellent assets to pledge forward for security. Planes are incredibly valuable for an airline and its operations. Given that Singapore Airlines has secured multiple aircraft to raise this money, losing the aircraft would be a huge blow to the airline’s operations. This gives Singapore Airlines great incentive to pay back the loans– which