Singapore Airways CEO Goh Choon Phong advised reporters and analysts on Friday that an order for 31 Boeing 737 Max jets stays “intact” regardless of the plane mannequin’s two lethal crashes in Ethiopia and Indonesia.
That comes after Singapore Airways’ regional affiliate SilkAir grounded six Boeing 737 Max jets in March.
Nevertheless, Goh advised CNBC’s Sri Jegarajah that the grounding provides “some problems” to the deliberate merger between Singapore Airways and SilkAir.
With the 737 Max jets — initially deliberate to be a part of the restructuring program — grounded, SilkAir should retain its older 737 NG aircrafts which have been set to be moved to Scoot, a low-cost service owned by Singapore Airways, he defined.
That signifies that the airline should resolve on whether or not or to not perform cabin upgrades on the outdated 737 NG aircrafts as a substitute, Goh mentioned. This additionally has a “consequential influence” on Scoot, which is able to now need to “take a look at development with out the 737 NG,” he added
“In each instances, we’re options. We imagine we may have them,” Goh advised CNBC.
In March, a 737 Max eight operated by Ethiopian Airways crashed minutes after takeoff, killing all 157 folks on board. That accident got here lower than 5 months after the identical mannequin airplane operated by Indonesia’s Lion Air crashed shortly after taking off from Jakarta, killing all 189 on board.
Singapore Airways on Thursday reported its highest-ever annual income, pushed by excessive passenger demand. Greater gas prices, nevertheless, took an enormous chunk out of the airline’s income, which practically halved to about S$682.7 million.
—Reuters contributed to this report.