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Singapore Airlines cutting capacity by 11% as global economic downturn bites

Analysis

Singapore Airlines (SIA) has announced plans to reduce capacity in the coming financial year, commencing April 2009, by 11% year-on-year, as it fortifies its response to a "sharp and swift" downturn in demand. In the course of the year, 17 aircraft will be decommissioned from the operating fleet. Before recession hit major markets, the plan was for only four aircraft to be phased out - one for conversion to a freighter, and three to be returned to lessors at completion of lease contracts.

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