Singapore Air mothballs second cargo plane amid overcapacity

SINGAPORE (REUTERS) - The cargo arm of Singapore Airlines Ltd (SIA) 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 per cent less cargo in April from a year ago.

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