Asia airline suspensions, country closures 23-29MAR

Singapore Airlines nets additional $500mn from bond issue

Singapore Airlines (SQ, Singapore Changi) has raised USD500 million in its first US dollar-denominated bond issue, which “will be used for aircraft purchases” as well as other purposes including the refinancing of existing debt, it announced in a statement.

The issuance, which was was finalised on January 14, was oversubscribed, with the bookrunners receiving bids amounting to more than USD2.85 billion, the company claimed.

The five-and-a-half-year bonds are being issued at a price that is 99.573% of their principal amount, with a maturity date of July 20, 2026, and carry a 3% coupon rate.

“The issuance further strengthens the company’s liquidity position and provides SIA with the financial flexibility to capture medium- to long-term growth beyond the Covid-19 pandemic,” it said, adding that it would continue to explore other means to strengthen its liquidity further.

According to a trade term sheet seen by Reuters, 150 investors bought into the bond issue, 83% of which were fund and asset managers. Of the 150, 76% were based in Asia.

Singapore Airlines is the first...

Tata Sons may merge AirAsia India and Vistara - report

A merger between AirAsia India (I5, Bangalore Int'l) and Vistara (UK, Delhi Int'l) is one of the options their conglomerate parent Tata Sons is considering, having set up a strategy team headed by group chief financial officer Saurabh Agrawal to explore various possible solutions such as mergers and rebranding its airline ventures, two sources told the Hindustan Times and its financial offshoot Mint on condition of anonymity.

Tata, which is among those that have expressed an interest to acquire flag carrier Air India (AI, Mumbai Int'l), revealed its intention in December to raise its stake in AirAsia India from 51% to 84% by buying part of the stake held by its Malaysian partner AirAsia Group.

As previously reported, before the end of 2020 it duly moved to increase its holding to 83.67% for a total consideration of USD37.66 million. This deal has not yet closed, however. Under the share-purchase pact with AirAsia, Tata has the option of raising its stake in AirAsia India to 100%, but this may not happen if...

Court declares Thailand's NokScoot bankrupt

AirAsia to cut India stake to 13%, Tata mulls mega carrier

AirAsia Group plans to cut its stake in AirAsia India (I5, Bangalore Int'l) from 49% to just 13%, unnamed sources have told The Times of India, giving joint venture partner Tata Sons a significantly greater hold over the airline.

However, the low-cost carrier will continue to use the AirAsia brand for some time, together with other arrangements such as aircraft maintenance and ticketing and accounting software.

While the Malaysian group continues to run a common website for its operations in different countries, Tata Sons has started setting up a separate website for AirAsia India, according to the newspaper. The Indian conglomerate’s information technology subsidiary Tata Consultancy Services is also reportedly developing pilot and crew management software.

“It is not going to be an instant divorce but a prolonged one,” a source said.

Tata Sons and AirAsia Group continue to negotiate their differences, most notably over the sums each side is obligated to inject into their joint venture. AirAsia has said it is reviewing its investment in India after resolving to focus only on...