June 14, 2006 Singapore Airlines said Wednesday it will buy 20 Boeing 787-9 aircraft for $4.52 billion, hours after it expressed unhappiness about delays in Airbus' delivery of its A380 superjumbo.
In a statement, the carrier said it has purchase rights for another 20 aircraft from Chicago-based Boeing.
The decision is a stinging blow for Airbus, which hoped Singapore Airlines would be one of the first and biggest customers for another new model, the A350, that would compete directly with Boeing's 787. But airline and leasing company dissatisfaction with the design of the A350 has led Airbus to consider a costly redesign of the plane, delaying its launch for several years.
Boeing shares rose $2.02, or 2.6 percent, in pre-market trading after the news. Shares of Airbus' majority owner, European Aeronautic Defense & Space Co., lost almost 27 percent to 18.52 euros ($23.24) in afternoon trading.
"The decision to purchase the 787-9 is the culmination of an extensive evaluation of the performance characteristics and operating economics promised for the different versions of Boeing's new 787 aircraft," the statement said. According to the statement, the aircraft can carry up to 290 passengers on routes up to 10,000 miles, allowing airlines to reduce the number of stopovers.
It also added that deliveries will be scheduled between early 2011 and mid-2013, and will be for "fleet renewal as well as to cater for growth."
Earlier Wednesday, the airline said it may seek compensation from Airbus for yet another delivery snag for its A380 superjumbo, after the European manufacturer announced delays for the jet's rollout.
Singapore Airlines was the first carrier to buy the $300 million superjumbo, ordering 10 of the double-decker jets with an option to purchase another 15.
Airbus had previously said it would deliver two of the jets before the end of 2006. But Airbus on Tuesday said deliveries of its 555-passenger aircraft could be delayed by up to seven months due to production line bottlenecks.
Singapore Airlines plans to deploy the 787-9 aircraft on routes to North Asia, the Indian subcontinent and the Middle East.
Airbus and Singapore Airlines (SIA) say that the carrier’s decision last week to order up to 40 Boeing 787-9s does not close the door to a possible deal for the A350/A370.
SIA has signed a letter of intent for 20 787-9s and taken purchase rights for another 20, for delivery between 2011 and 2013. The announcement comes after a long-running evaluation of the 787 against the A350 that had been slowed partly by the changes made to the A350 over the course of the campaign.
SIA has been among the A350 critics, pushing Airbus to improve the aircraft’s specification. Airbus viewed SIA as one of the key targets for the A350/A370, but is playing down the impact of the decision to opt for its rival. “[SIA chief executive] Chew Choon Seng has been saying publicly what we’ve got to do to fix the A350,” says Airbus chief operating officer, customers, John Leahy. “I have had a conference call with the airline [since the 787 deal was announced] and discussions will continue on the A350.” SIA says “we don’t believe in closing the door on anything”, and confirms that it will continue talking with Airbus about the A350. “The door is still open.” Leahy says that the possible loss of SIA as a customer “does not impact our internal discussions on what to do with the A350”, despite the airline being one of the key drivers behind studies into the revamped family.
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Light travels faster than sound...thats why people appear bright, until you hear them talk!
Now that we all know that SIA ordered for leasing A350s (correct me if wrong)
actually it is a purchase, here is a quote from Aviation Week
"In fact, when the most recent delay was announced, Singapore immediately placed an order with Boeing for 20 787-9s. Since it usually buys in bigger batches, that order left many observers expecting a second act, which came at Farnborough when it signed a letter of intent to purchase 20 A350XWB-900s. Switching between competitors indicates planning for a bigger picture: SIA regards keeping both Boeing and Airbus healthy as crucial to ensuring choice and good pricing."
Well i reckon its been a bigger win for Airbus who not only have agreed to go in for new A350 but also ordered more A380 i guess inspite of the plane running behind schedule and plus Sq is getting A330 as an interim measure which i guess have always competed with the 777 series...
All boeing got was a bunch of 787,s while the bigger pie is with Airbus