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Singapore Airlines

Singapore Airlines finalizes Boeing deal worth up to $13.8 billion

Seen here in a photo from September 2013 is a shot of the first Singapore Airlines Boeing 777-300ER to be configured with its all-new interior at the gate at Boeing's Everett Delivery Center.

 

Singapore Airlines formalized a $13.8 billion dollar with Boeing on Monday, cementing a deal first announced in February. 

The deal – for 20 Boeing 777-9s and 19 787-10 “Dreamliners" – would be valued at $13.8 billion at list prices, though big carriers typically negotiate substantial discounts on such orders. Reuters suggests "the deal is estimated to be closer to $6.5 billion in value," according to estimates from the investment banking firm Jeffries.

Singapore Airlines first announced its intention for the order in February, but it was not finalized until a signing ceremony staged Monday at the White House in Washington, D.C.

In addition to the 39 jets included in the firm order, Singapore Airlines (SIA) added six options for each aircraft type. If exercised, those could enlarge the deal to as many as 51 aircraft.  

“SIA has been a Boeing customer for many decades and we are pleased to have finalized this major order for widebody aircraft, which will enable us to continue operating a modern and fuel-efficient fleet,” Singapore Airlines CEO Goh Choon Phong said in a statement. “These new aircraft will also provide the SIA Group with new growth opportunities, allowing us to expand our network and offer even more travel options for our customers.”

The order is Singapore Airlines’ first for Boeing’s newest and largest 777 variant, the 777-9 that is expected to begin flying later this decade. The order for the 19 787-10 Dreamliners – also Boeing’s latest and biggest variant of that aircraft – are on top of 30 that Singapore has already made for the jet. Those planes will begin arriving to the company next year. 

Singapore Airlines says its 777-9s are intended primarily for long-haul routes and will begin arriving to the airline in the 2021-2022 financial year. The 787-10s from the latest order are due to arrive a year earlier and will be slotted on to medium-range routes.

 

ARCHIVES: Singapore Airlines takes delivery of luxurious new 777 (2013)

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