Aviation industry can pull through amidst crisis: SIA

The airline has formed teams to discuss its future plans.

The pandemic was considered to be the biggest challenge ever faced by the aviation industry, but Singapore Airlines (SIA) is optimistic that longer-term drivers in the industry would help it come through, CEO Goh Choon Phong said in a dialogue with Securities Investors Association (Singapore) (SIAS).

SIAS queried about the airlines’ long-term outlook for the aviation sector, and on its strategies and plans following the COVID-19 pandemic. They also asked how SIA is positioned to take advantage of the eventual recovery and increase its market share.

Also read: S ingapore Airlines posts $212 million loss for the full year

Goh in particular cited that people will still want to travel for business and for leisure. "Video conferencing has taken off as you mentioned earlier, but people still want to meet in person. Most of us want to create new experiences and share them with our loved ones," he said.

Goh noted that it is still unclear how the market will recover and what safety measures will be needed, but they have already formed internal teams discussing what will be needed in the new norm and in the long term.

Also read: SIA's shareholders greenlights $15b fundraising

SIAS reached out to SIA after receiving concerns from retail shareholders about the rationale for the $15b cash call through 3 for 2 shares rights issue and the mandatory convertible bonds (MCBs) rights issue.

"We have broken the rights issue into two parts as we were concerned with dilution. In fact, the MCBs may not be dilutive to shareholders at all if they are fully redeemed before the year 10," Goh assured.

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