Singapore Air mothballs second cargo plane amid overcapacity

SINGAPORE (Reuters): The cargo arm of Singapore Airlines Ltd., said on Monday it will store a second Boeing 747-400 freighter aircraft as a result of continued overcapacity in the air cargo market.

The aircraft will be parked at Victorville, California from June 2013 until May 2014, leaving SIA Cargo with 11 B747-400s. SIA Cargo had previously put a freighter aircraft in storage in December 2012. “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.

Singapore’s Changi Airport said earlier on Monday it moved 1.8% less cargo in April from a year ago.