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Boeing Co has won an order from Singapore Airlines for 39 new wide-body aircraft as the largest long distance air carrier in Asia upgrades its aircraft fleet during the next decade with more models that are fuel-efficient in its effort to lower costs.
Singapore Air will purchase 20 Boeing 777-9s, which will be debuting at the end of this decade, and 19 new 787-10s, the longest model of the Dreamliner line for a total list cost of $13.8 billion that does not reflect any of the customary bulk purchase discounts.
Deliveries of this order will begin as early as March of 2021, said the air carrier, adding it has options as well to purchase six additional aircraft of each of the models in the order.
The deal provides an important boost to two of Boeing’s high-profile products amidst a tough market for jets with twin-aisles. The company, based in Chicago has worked hard to sign deals for its upgraded family of 777X after announcing twice it would cut its output of its current models.
The new line of aircraft will be replacing some of the aging Boeing aircraft that Singapore Air now has such as its 777-300ER and will give the air carrier rights to low-cost units not yet in the market.
One aerospace analyst said that Singapore Air was a deeply respected carrier in the long-haul segment of the industry both in technical proficiency and brand quality.
Shares of the airline were up 1.4% during Thursday trading in Singapore prior to the announcement by the airline.
Singapore Air ordered 67 A350-900 aircraft including a version that is ultra-long range, as it courts the business traveler with its non-stop service into markets like Los Angeles and New York.
The current fleet of the Asian carrier includes 10 Airbus A350s which the European plane maker said consume 35% less fuel than do the 777 aircraft of Boeing, with another 57 on order.
The airline has on order from a previous order 30 787-10 aircraft said the Boeing official website.
Singapore Air also reviewed another proposal for a longer 777 twin-engine version that would carry up to 450 passengers, which is a load only handled previously by four-engine jumbo gets, reported an international news agency on Wednesday