SYDNEY: Singapore Airlines will cut capital spending this financial year by at least 12 percent from its previous plan, with the final reduction to be determined by talks with planemakers over delivery delays, its chief financial officer said on Friday.
The new forecast of S$5.3 billion or less by the end of the year ending March 31, 2021, compares with a S$6 billion figure outlined in November before the coronavirus pandemic destroyed demand and led the airline to ground most of its fleet.
“Any agreements we may reach with Airbus and Boeing in the coming weeks and months are not reflected here,” CFO Stephen Barnes said of the new estimate at a briefing for media and analysts.
Singapore Airlines on Thursday evening reported its first-ever annual loss, citing poor fuel hedging bets and the collapse in demand driven by the coronavirus pandemic, saying the timing of any recovery was uncertain.
Regional rivals Cathay Pacific and Qantas Airways are among the global carriers looking to push back the delivery of new aircraft as they grapple with the plunge in demand.
Barnes said the Singapore Airlines did not expect to fly at its pre-pandemic capacity for at least 12 to 18 months. It plans to retire its Boeing 777-200ERs earlier than expected and will not renew its eight Airbus A330 leases, which will expire in the next 12 to 14 months, he said.
Brendan Sobie, an independent analyst in Singapore, said that it would be difficult for Singapore Airlines to make significant changes to its current-year deliveries, but that as the planemakers slowed production, some could be pushed into next year.
“I expect a bigger impact in the following fiscal years, with more significant deferrals in terms of number of aircraft and number of years,” Sobie said. “This is in line with what we are seeing in the industry generally.”
Singapore Airlines and regional arm SilkAir have cut 96 percent of passenger capacity through the end of June, and low-cost arm Scoot has cut 98 percent.
The company said its cargo capacity had suffered less, dropping 60 percent because it was maximizing the use of its dedicated freighter fleet, using empty passenger jets to carry cargo and doing ad-hoc charter flights.
Air freight rates have risen sharply as airlines have cut back on passenger capacity; in normal times, around 50 percent of air cargo is carried in the belly of passenger planes.
Singapore Airlines cuts capital spending estimate by at least 12% amid coronavirus crisis
https://arab.news/6cxkc
Singapore Airlines cuts capital spending estimate by at least 12% amid coronavirus crisis
- ‘Any agreements we may reach with Airbus and Boeing in the coming weeks and months are not reflected here’
- Singapore Airlines not expected to fly at its pre-pandemic capacity for at least 12 to 18 months
Global investors commit more than $3bn to King Salman Park as Saudi giga-project secures new deals
RIYADH: The King Salman Park Foundation has secured more than $3.8 billion in new private-sector commitments at the MIPIM 2026 real estate conference, including a landmark $3 billion fund backed by international investors to develop a major mixed-use district in the heart of Riyadh.
According to a press release, the announcements bring total committed investment in the 17.2 sq. kilometers urban regeneration project to over $5.3 billion across five major packages.
Launched in 2019 under Saudi Vision 2030, the development is designed to be the world’s largest city park and aims to boost green space, improve quality of life, and feature over 1 million trees and extensive leisure facilities.
A $3 billion metro-connected district
The largest of the two packages, designated Package 5, will see a consortium led by Kolaghassi Development Co. deliver a residential-led district with a total built-up area exceeding 1 million sq. meters.
It will provide approximately 3,700 residential units, a K–12 school, around 300 hospitality keys and more than 100,000 sq m of Grade A office space alongside a wide variety of retail and dining offerings.
The development is supported by a Saudi-domiciled, Capital Market Authority-regulated fund managed by Mulkia Investment Co. that has attracted leading investors from the Kingdom and across the world.
Kolaghassi Development Co. will lead the project alongside Al Othaim Investment, one of the Kingdom’s real estate players, and RXR, a New York-headquartered real estate investor and operator.
“Securing investment of this scale, supported by international capital and expertise, is an important milestone for King Salman Park,” said George Tanasijevich, CEO of King Salman Park Foundation.
$850 million cultural district package
In a separate announcement, the Foundation confirmed the award of Package 4 to a consortium led by Retal Urban Development Co., with support from a fund managed by SAB Invest.
The project has a total value exceeding $850 million and will host more than 600 residential units, over 140 hotel keys, and almost 50,000 sq m of Grade A office space, alongside curated retail and food and beverage experiences.
“This opportunity reflects the maturity of Saudi Arabia’s real estate investment landscape and our confidence in culture-led, mixed-use urban destinations as a driver of sustainable returns,” said Abdullah Al-Braikan, CEO and founder of Retal Urban Development Co.
Ali Al-Mansour, CEO of SAB Invest, said the fund structure brings together “long-term capital, experienced development partners, and a shared commitment to place-making excellence” while contributing to Riyadh’s cultural vibrancy and the Kingdom’s quality-of-life ambitions under Vision 2030.
