Singapore Airlines orders 18 Boeing 777 jets
Singapore Airlines orders 18 Boeing 777 jets
Jake Lloyd-Smith, Associated Press, Singapore
Singapore Airlines, Asia's most valuable flag-carrier, said on
Wednesday it had ordered up to 31 long-range Boeing 777-300
jetliners as it expands its fleet, but was for now spurning the
U.S. planemaker's new Dreamliner 7E7.
The contract win is likely to be regarded as a big plus for
Boeing in its never-ending dogfight with European rival Airbus.
But the setback for the Dreamliner will likely rankle as Boeing's
commercial future is heavily reliant on the new model's success.
Aircraft orders from state-linked Singapore Airlines are
highly prized by plane manufacturers as analysts say the
company's purchasing decisions can act as a guideline for other
carriers. The company has one of the youngest fleets worldwide.
In a statement to the local stock exchange, Singapore Airlines
said it had placed a firm order for 18 Boeing 777-300s, which
will be delivered between 2006 and 2010 to help it expand its
fleet.
The company has taken options on 13 more 777s in deal valued
at US$7.35 billion (euro 6 billion) in list prices if the cost of
spares and spare engines is included. Airlines typically
negotiate steep discounts, however.
The twin-engined B777-300ER - which stands for extended range
- can seat about 350 passengers, and can cover 7,000 nautical
miles (13,000 kilometers). Singapore Airlines said it would use
them on its long-haul and medium-haul routes.
The order would enable the carrier to expand its combined
passenger and cargo capacity by between 4 percent and 6 percent a
year.
General Electric GE90-115B engines will be used on the new
planes.
Singapore Airlines Chief Executive Officer Chew Choon Seng
said Chicago-based Boeing and Airbus had competed fiercely for
that deal.
The new Boeings "should integrate well with our existing
fleet, which already includes fifty-five aircraft from the B777
family," Chew said in the statement.
But Singapore Airlines said it had also asked manufacturers to
pitch aircraft suitable for its regional routes, and Boeing
offered the 7E7 for evaluation against Airbus' A330-200.
Neither prevailed as "the proposals submitted did not meet
(Singapore Airlines') financial criteria," the company said
without elaborating. For now, the airline will continue to use
its existing B777-200s on regional routes.
Boeing's 230-passenger 7E7s are scheduled to enter service in
2008. The planemaker says the new model - its first all-new plane
in a decade - is more efficient than existing, rival planes.
After years of weighing up the project, it formally launched
the 7E7 program in April with a 50-plane order from Japan's All
Nippon Airways.
Last month, Boeing said it had proposals for 7E7 orders out to
more than 30 airlines.
Singapore Airlines currently operates 89 wide-bodied aircraft,
and already has an additional 14 firm orders outstanding,
including four for Boeing 777 jets.