Singapore Airlines raises $1.5bn through sale/lease-backs

Singapore Airlines (SQ, Singapore Changi) has announced the conclusion of sale/lease-back transactions with four lessors, covering seven A350-900s and four B787-10s, and raising around SGD2 billion Singaporean dollars (USD1.5 billion) in the process. The transaction includes deals with Aergo Capital (one A350 and one B787), Altavair (four A350s), EastMerchant Capital/Crianza Aviation (one A350 and two B787s), and Muzinich and Co. Limited (one A350 and one B787). Aergo Capital disclosed that its deal was financed by way of Sharia-compliant funding from the Dubai Islamic Bank (DIB). The other three lessors did not provide any further details. According to the ch-aviation fleets ownership module, Singapore Airlines operates forty-eight A350-900s, of which it has hitherto owned 44 units. The other four are dry-leased, two each from Altavair and EastMerchant Capital/Crianza Aviation. The airline also operates seven A350-900(ULR)s, which it owns. In terms of its B787 fleet, Singapore Airlines operates fifteen B787-10s, of which it has thus far owned thirteen and dry-leased the remaining two from EastMerchant Capital/Crianza Aviation. Singapore Airlines continues to own the bulk of its fleet. Prior to the newly announced transaction, it dry-leased just 20 out of its 135 active aircraft: all three A330-300s, four out of forty-eight A350-900s, four out of nineteen A380-800s, all seven B737-800s, and two out of fifteen B787-10s. The carrier said that inclusive of this transaction, it has now raised around SGD15.4 billion (USD11.6 billion) in fresh liquidity since the beginning of the COVID-19 pandemic.