Singapore Airlines is grounding another of its cargo planes as the company continues to feel the squeeze of high fuel prices, weak demand and an overcapacity in the industry.
This is SIA's second freighter to be put into storage in the past 6 months. The first was in December 2012.
The news comes just weeks after SIA Cargo posted dismal annual results for its fiscal year, when it saw an operating loss of S$167 million.
"Fuel prices remain high and we continue to see weakness in the air cargo market due to industry-wide overcapacity, which has put pressure on rates," SIA Cargo President Tan Kai Ping said in a statement.
"We will continue to monitor market conditions closely and make further capacity adjustments as required."
The Boeing 747 will be put into storage in Victorville, California from next month until May 2014.
This will leave SIA with 11 freighters in operation.
SOURCE
Over capacity has put another B747 into cold storage in faraway land California. Makes you wonder how much does it cost to park a jumbo for a year. How about maintenance? Will firing up the engine once in a while be needed? If so, who will do it?
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