Singapore Airlines (SIA) announced Thursday it will buy 30 Airbus and 30 Boeing aircraft in an order worth more than $17 billion as it seeks to maintain market leadership using the next-generation fuel-efficient planes. "Singapore Airlines has agreed to order 30 more Airbus A350-900s and 30 Boeing 787-10Xs in deals valued at more than US $17 billion," the airline said in a statement.
For Airbus, the deal includes an option to purchase 20 more planes in addition to the 30 firm orders. The options can be converted to firm orders for bigger A350-1000s, it said. SIA said the latest Airbus order is SIA's third for the A350-900s and will raise to 70 the number of firm orders in place for the aircraft type.
The agreement with Boeing comprises 30 firm orders and is conditional upon the US aircraft maker formally launching the B787-10X programme. "Today's aircraft orders are among the biggest in Singapore Airlines' history, helping to ensure that we retain our industry leading position," said chief executive Goh Choon Phong.
"They demonstrate our commitment to the Singapore hub and our confidence in the future for premium full-service travel." SIA is battling strong competition in the premium segment from Middle Eastern carriers and on the economy side from budget airlines, which have grown in number in the region. Like other airlines its net profit has also been hurt by the global economic slowdown, which has hit both passenger and cargo demand, as well as high oil prices. The fresh orders "underscore SIA's response to the Gulf carriers' aggressive approach", said Shukor Yusof, an aviation analyst with Standard and Poor's Equity Research.