SIA orders aircraft worth $21.5 billion from Airbus and Boeing

[alberttky 0]

 

SINGAPORE - Singapore Airlines has ordered 30 Airbus and 30 Boeing aircraft in a deal valued at more than US$17 billion (S$21.5 billion), among the biggest in the airline's history.

 

The deal makes Singapore Airlines the launch customer for a proposed stretched version of the 787 Dreamliner, boosting Boeing's plans to offer a

320-seat aircraft designed for crowded intra-Asian routes. The order is subject to Boeing deciding to go ahead with the project, the airline said.

 

The carefully balanced deal also offers a tentative endorsement of the largest version of Airbus's future A350 - the 350-seat A350-1000 - which aims to compete with Boeing's successful 777 mini-jumbo. Singapore Airlines said it had the option to convert some of its orders for the main

A350-900 model to the larger A350-1000.

 

Singapore Airlines already had 40 A350-900s on order.

 

- See more at: http://business.asiaone.com/news/sia-orders-aircraft-worth-215-billion-airbus-and-boeing#sthash.ArjKTVIu.dpuf

 

Singapore to launch 787-10X with order for 30

 

 

The carrier disclosed the agreement - which is conditional on a formal launch - as it firmed orders for 30 more Airbus A350-900s.

Delivery of the 787-10X would take place in the 2018-19 financial year. The carrier has not made an engine selection for the Boeing twinjets.

"It is conditional upon Boeing formally launching the 787-10X programme," the airline says. It values the combined aircraft agreement at $17 billion.

Delivery of the A350s would take place in 2016-17. The carrier has placed options on a further 20 of the type, which could be converted to the larger -1000. A350s are only available with Rolls-RoyceTrent XWB engines.

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

"These new aircraft 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."

http://www.flightglobal.com/news/articles/singapore-to-launch-787-10x-with-order-for-30-386486/

Edited May 30, 2013 by alberttky

[Alvin Sim 0]

hopefully they'll open up the cadet pilot programme real soon

[alberttky 0]

hopefully they'll open up the cadet pilot programme real soon

Not for another year at least.

[flee 5]

This is something that MH can copy - these aircraft are suitable replacements for their B772s and A333s.

 

SQ appears to be hedging their bets, hence the split orders between A and B. SQ has always been on the ball with their fleet plans and this order continues their long tradition of good fleet planning.

[flee 5]

Boeing Stretched 787 Gets First Sale in Split With Airbus

 

Boeing Co (BA). won the first order for the stretched version of its 787 Dreamliner as Singapore Airlines Ltd. (SIA), Southeast Asia’s biggest carrier, split a purchase of jets with Airbus SAS valued at $17 billion.

 

The transaction covers 30 of the larger, 787-10X variant and 30 Airbus A350-900s, Singapore Airlines said yesterday. The airline also granted an option for 20 more 350-900s and said it may convert those to buy the larger A350-1000 variant.

Fresh 787 demand is a boost for Boeing after regulators ordered the global fleet parked for three months starting in January because of battery faults, straining customer ties. Deliveries of the 787-10X Dreamliner are due to start in 2018, contingent on the Chicago-based company’s formal commitment to a model it has been marketing since November.

“Someone stepped up early, and it will probably create some momentum,” said Howard Rubel, an analyst at Jefferies LLC in New York. “Singapore is one of those carriers that’s in the category of a very deliberate decision maker, one who sets a high standard for whatever it buys, and usually ends up in a position to be a leader in its market and others will follow.”

The Dreamliner and A350 are competitors in the wide-body segment in which Toulouse, France-based Airbus has been trying to chip away at Boeing’s historic dominance. Those planes are typically used on the longest intercontinental routes and can sell for two to three times as much as single-aisle models.

Implied Price

Singapore Airlines’ projection of a combined order value of $17 billion suggests a list price of about $279 million for the 787-10X, for which Boeing hasn’t yet published prices. The 787-8 version retails for $206.8 million, and the 787-9 for $243.6 million.

Airbus lists the A350-900 at $287.7 million, and the A350-1000 at $332.1 million. The larger model is due to start reaching customers in 2017. Airlines typically buy at a discount.

“These new aircraft will provide opportunities to grow and renew our fleet and enhance our network,” Singapore Airlines Chief Executive Officer Goh Choon Phong said in a statement, calling the orders among the biggest in the carrier’s history.

Singapore Airlines fell 0.5 percent to S$10.84 before yesterday’s announcement. Boeing rose 1.5 percent to $100.54 at the close in New York, while Airbus parent European Aeronautic, Defence & Space Co. added 0.1 percent to 44.25 euros in Paris.

“Singapore Air is exactly the sort of cornerstone airline that the aircraft makers like to launch a plane,” said Robert Stallard, a London-based analyst at RBC Capital. “It’s a strong endorsement of the -10 business case.”

A350 Challenger

Boeing has designed the 787-10X to replace its 777-200 and compete with the mid-sized Airbus A350, which is due for its first flight within weeks. The bigger Dreamliner would seat about 43 more people than the 250 to 290 passengers on the 787-9, Boeing has said.

Ray Conner, the chief of Boeing’s commercial airplanes unit, told investors last week that adding the 787-10X may force Boeing to add production capacity. With an order backlog of more than 800 Dreamliners and output now set to double this year to 10 a month, the assembly tempo would have to increase for the larger version to reach customers this decade.

“Launching the 787-10 implies that Boeing would need to increase production,” said Yair Reiner, an Oppenheimer & Co. analyst in New York. If yesterday’s announcement “takes it a step closer to 787-10 launching, it also takes us a step closer to Boeing increasing production beyond 10 aircraft a month.”

Reiner and Stallard rate Boeing as outperform, the equivalent of Rubel’s buy recommendation at Jefferies.

More A350s

The deal with Airbus, with deliveries in 2016 and 2017, is the third time Singapore Airlines has bought A350-900s and brings the total commitment to 70 jets.

“We are certainly pleased that one of the world’s premier airlines has selected to buy 70 firm A350 aircraft,” John Leahy, head of sales at Airbus, said by phone. Lori Gunter, a Boeing spokeswoman, said the 787-10X offers “a compelling value proposition” to airlines.

Airbus has booked 616 firm orders from 34 customers for its A350 family through April, including 110 firm commitments for the largest model, the -1000, with a deal from British Airways parent IAG SA (IAG) to take 18 not yet in the backlog.

Singapore Airlines said it will make an engine selection later for the 787-10X, with offerings from General Electric Co (GE). and Rolls-Royce Holdings Plc (RR/). The plane will be used on medium-range routes, and the A350 on medium to long flights, the carrier said. The A350 comes only with Rolls-Royce engines.

Source: http://www.bloomberg.com/news/2013-05-30/singapore-air-to-order-17-billion-of-airbus-boeing-aircraft.html

[Suzanne Goh 0]

SQ is quite clever main kayu tiga here.... depan mari! belakang pun mari!

[sweekee 0]

SQ is quite clever main kayu tiga here.... depan mari! belakang pun mari!

 

SQ play very proper decision.

Put all the eggs in only one basket ,if any big a/c development delayed like 787/380 happened again.

There will be a huge lost for SQ.

Distribute order in two factory can reduce the potential risk

[Mushrif A 3]

SQ is quite clever main kayu tiga here.... depan mari! belakang pun mari!

 

Since the days of 757-200 and A310-200.

[alberttky 0]

SQ just want to make friends with both Airbus and Boeing. Unlike Akbar Al Baker.

[S V Choong 4]

SQ just want to make friends with both Airbus and Boeing. Unlike Akbar Al Baker.

More like SQ wanting more than just one bed partner

[Sandeep G 1]

Fingers crossed for SQ to get the 787-10X - A lot of disappointed pilots when the announcement was made for the original order to shift to Scoot...

 

wrt SIA Cadet Pilot programme - on hold for at least 1-2 years, I just spoke today with someone from Talent Management.

[JuliusWong 0]

SQ is looking to become a pioneer user again with B787-10X. It has been a while since SQ did that with A380, which ended up with disastrous consequences.

 

We are now wondering if the current 13 A330s will be retired as the A350s come along? However, SQ placed an additional A330 order recently with one to be delivered soon.

[KK Lee 5]

SQ is looking to become a pioneer user again with B787-10X. It has been a while since SQ did that with A380, which ended up with disastrous consequences.

 

We are now wondering if the current 13 A330s will be retired as the A350s come along? However, SQ placed an additional A330 order recently with one to be delivered soon.

 

 

When 787 was grounded, ANA used 767 like previously. However, when 787 are back in service, ANA have competitive advantages over existing 767 operators. If an airline (e.g. JAL) will only to decide to replace 767 after seeing 787 have solved all the teething problems, ANA would have lower CASK and better products for 5 years.

[Isaac 0]

SQ is looking to become a pioneer user again with B787-10X. It has been a while since SQ did that with A380, which ended up with disastrous consequences.

 

There were/are problems with its 388 operation but I wouldn't call it disastrous

 

 

We are now wondering if the current 13 A330s will be retired as the A350s come along? However, SQ placed an additional A330 order recently with one to be delivered soon.

Actually they have 21x 333 in active operation now, with 1 to be delivered soon and another 12 on firm order. The lease of 8x 333 will run out soon. Since they aren't getting any 787 or 350 next year and the 772ER with derated engines are on their way out, it is very likely they will extend the lease of the 333 as many in the industry have speculated since last year. Edited June 1, 2013 by Isaac

[alberttky 0]

 

Singapore opts for Trent 1000 on 50 787s

 

 

Singapore Airlines is to fit Rolls-Royce Trent 1000s to the airline's new Boeing 787-10X aircraft, after the carrier disclosed a conditional order for 30 of the new type.

Rolls-Royce has been developing a new variant of its Trent 1000, which it has designated the 1000-TEN, which it will offer for the whole 787 range - including the -10X.

Singapore Airlines is to take delivery of the 787-10Xs from 2018-19, if Boeing formally launches the programme. The 1000-TEN engine is intended for service entry from 2016.

The airline says it has opted for the Rolls-Royce powerplant, and has also chosen the Trent 1000 to power 20 other 787s which will be delivered to its spin-off operation Scoot from 2014.

Singapore Airlines ordered 20 787-9s in 2006, before transferring the order to Scoot. Half of these -9s have been converted to the smaller -8.

Although the Scoot aircraft will start arriving before the 1000-TEN enters service, a source familiar with the agreement indicates that some of the airline's 787s will have the new Package-C version of the Trent 1000, due to be available in 2014, while others could be fitted with the 1000-TEN.

The carrier says it carried out a "detailed evaluation" of the two engine options - from Rolls-Royce and General Electric - for all 50 of the Singapore and Scoot 787s, adding that the final Rolls-Royce deal will include a TotalCare maintenance package.

Rolls-Royce has yet to confirm the engine supply agreement.

Its Trent 1000-TEN will feature improved fuel consumption compared with the current versions of the engine. It will be certificated to 76,000lb (338kN) thrust but will be able to generate 78,000lb if necessary.

For the 787-8s it will provide 70,000lb thrust, rising to 74,000lb for the -9. The 1000-TEN will take advantage of technologies from the Trent XWB, developed for the Airbus A350.

Singapore declared its intention to order 30 A350-900s alongside the 787-10Xs, which would be fitted with the Trent XWB.

http://www.flightglobal.com/news/articles/singapore-opts-for-trent-1000-on-50-787s-386843/

I wonder if the decision was in any influenced by the fact that the engines are made in Singapore...

[Jack Emilius 0]

This is something that MH can copy - these aircraft are suitable replacements for their B772s and A333s.

 

SQ appears to be hedging their bets, hence the split orders between A and B. SQ has always been on the ball with their fleet plans and this order continues their long tradition of good fleet planning.

 

Very good decision by SQ. Sound investment. If these aircrafts are intended to replace a couple of A333s and the older B772s, any delays to them would slightly disrupt SQ's objectives right? Cost to operate older aircrafts like B772s, older in-flight entertainment system, lower passenger capacity etc

 

Since the days of 757-200 and A310-200.

 

What happened? Mind to share?