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Singapore Airlines places $17 bn order

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(Globalpost/GlobalPost)

Singapore Airlines (SIA) said Thursday it will buy 30 Airbus and 30 Boeing aircraft in an order worth more than $17 billion dollars.

"Singapore Airlines has agreed to order 30 more Airbus A350-900s and 30 Boeing 787-10Xs in deals valued at more than US$17 billion," the airline said in a statement.

For Airbus, the deal includes an option to purchase 20 more planes in addition to the 30 firm orders. The options can be converted to firm orders for bigger A350-1000s, it said.

The agreement with Boeing comprises 30 firm orders and is conditional upon the US aircraft maker formally launching the B787-10X programme, the airline added.

"Today's aircraft orders are among the biggest in Singapore Airlines' history, helping to ensure that we retain our industry leading position," said chief executive Goh Choon Phong.

"They demonstrate our commitment to the Singapore hub and our confidence in the future for premium full-service travel."

He said the new planes "will provide opportunities to grow and renew our fleet and enhance our network, benefiting customers by offering more travel options and the latest in-flight cabin products".

SIA is battling strong competition in the premium segment from Middle Eastern carriers and on the economy side from budget airlines, which have grown in number in the region.

The Airbus firm orders will be delivered from the 2016/2017 financial year and the Boeing planes from the 2018/2019 fiscal year, it said.

Rolls-Royce's Trent XWB is the sole engine type for the A350-900, while an engine selection for the B787-10Xs will be made later, the airline said.

SIA said it will use the Airbus planes for its medium and long-range routes and the Boeings for medium-range services.

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http://www.globalpost.com/dispatch/news/afp/130530/singapore-airlines-places-17-bn-order