Published: Fri, February 10, 2017
Markets | By Lucia Cruz

Singapore jet commitment 'major win' for Boeing

Singapore jet commitment 'major win' for Boeing

The airline agreed to buy 20 777-9s, which are set to debut at the decade's end, and 19 787-10s, the longest Dreamliner model, for $13.8 billion at list prices that don't reflect customary discounts, Singapore Air said in a statement on Thursday.

The carrier is due to receive its 777-9s and the 19 787-10s from its 2021-22 financial year onward.

"Today's major order for wide-body aircraft enables us to continue operating a modern and fuel-efficient fleet, providing the SIA Group with additional expansion opportunities to ensure that we retain our industry-leading position", said chief executive Goh Choon Phong. Wednesday's LOI marks the the SIA Group's first order for the largest member of new 777X family, scheduled to enter service in 2020.

SIA has chosen the Rolls-Royce Trent 1000 turbofan to power the 787-10s, which it said it plans to operate on medium-range routes.

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"The new Boeing 787 aircraft are likely to be given to Scoot and Tiger Airways, which will be used for shorter journeys around the region", said Shukor of Malaysia-based aviation consultancy Endau Analytics.

SIA became the launch customer for the 787-10 in 2013, when it placed its first order for 30 of the biggest Dreamliners for delivery starting in 2018.

StrategicAero Research chief consultant Saj Ahmad said numerous new planes will likely replace the airline's ageing A330 and A380 fleets as well of some of its early B777-30ERs. But more orders are needed before Boeing would increase production of the twin-aisle plane from its current 12 per month to 14 per month, he added.

Singapore Air has also reviewed a proposed, longer version of the twin-engine 777 that would carry as many as 450 passengers, a load previously handled only by four-engine jumbo jets, Bloomberg News reported Wednesday.

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