SINGAPORE Airlines (SIA) is grounding 96% of its fleet capacity following further tightening of border controls around the world since last week to contain the Covid-19 pandemic.

“This will result in the grounding of around 138 SIA and SilkAir aircraft, out of a total fleet of 147, amid the greatest challenge the SIA Group has faced,” SIA said in a statement on its website.

SIA said its low-cost aviation unit, Scoot, would also suspend most of its network, leaving 47 of its 49 aircraft unmanned.

The move will affect 10,000 employees, said the carrier.

The management and directors of SIA Group have agreed to take a pay cut or go on unpaid leave, it said.

The carrier said it was unclear how long it would take for its operations to fully resume.

It had earlier stated that it was taking all measures to address the challenges of the coronavirus outbreak, including delaying taking delivery of orders from aircraft manufacturers or postponing payment for orders. 

It said it aimed to increase liquidity and reduce capital and operating expenses.

The Covid-19 pandemic has caused airline companies around the world to clash flight capacity and lay off workers as countries close their borders in efforts to stem the escalating number of infections.

Air Canada recently announced that it was retrenching 5,000 flight attendants while US airlines have warned of massive lay-offs and other draconian measures to stay afloat if help was not forthcoming from the government. – March 24, 2020.