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Singapore Airlines Receives $13 Billion Package Aid

State investor Temasek Holdings and others will pump up to S$19 billion ($13.27 billion) of liquidity into Singapore Airlines (SIA) within the single most significant rescue for an airline hampered by the coronavirus pandemic.

Singapore Airlines Receives $13 Billion Package Aid

The massive financing plan, which drove SIA shares down as a lot as 10.5% on Friday, underscores the depth of economic trouble for the worldwide airline business, with almost one-third of the world’s aircraft already grounded due to the pandemic, based on data provider Cirium.

Many countries around the world have already stepped in to assist airlines amid the virus-induced travel plunge, with the U.S. providing $58 billion in aid. Many carriers have grounded fleets and ordered thousands of employees on unpaid leave to keep afloat.

The S$5.3 billion equity and as much as S$9.7 billion convertible note parts of the Singapore Airlines fundraising are being underwritten by Temasek, which owns early 55% of the group.

The service has received an S$4 billion bridge loan facility with the nation’s biggest lender, DBS Group Holdings, to assist near-interval liquidity requirements.

SIA’s shares tipped into a rare trading halt earlier Thursday after plunging to their lowest in 22 years this week as traders feared the virus may have a deep impression on the company.

SIA has stated it would lower capacity by 96%, floor nearly its the whole fleet, and impose cost cuts affecting about 10,000 staff amid what it called the “biggest challenge” it had ever faced.

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