Cash-rich Singapore Airlines positioned for regional dominance as rivals pull back

Singapore Airlines, flush with US$16b raised since the start of the Covid-19 pandemic thanks to help from a state investor, is in a position of dominance among its South-east Asian rivals as they downsize and restructure. The crisis threatened the survival of hub carriers that lack domestic markets such as SIA, Cathay Pacific Airways and Emirates. Indeed, Singapore PM Lee Hsien Loong last year said the government would "spare no effort" to ensure SIA made it through the pandemic. Its majority shareholder, government-owned investment arm Temasek Holdings underwrote one of the world's biggest airline rescue packages. Thanks to that, SIA's has enough funds to keep going for at least two more years without cuts, and is modernising its fleet to save fuel, reduce maintenance costs and meet environmental goals while other airlines shed aircraft. "The crisis shows the importance of having a cash-rich state investor as its main backer," said a banker, who was not authorised to speak with media and spoke anonymously. SIA's cash pile is the envy of rivals like Thai Airways and Garuda Indonesia, which have received little government support. Many of SIA's rivals are trimming fleets to a level that could ultimately weaken their hubs and send more connecting traffic to Singapore. "Basically what these airlines are trying to do is they are trying to ward off their debtors," said Subhas Menon, DG of the Association of Asia Pacific Airlines.<br/>