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SIA finalises US$13.8b order for Boeing planes, signs new deal with GE Aviation

Singapore Airlines (SIA) has finalised a US$13.8 billion order for 39 Boeing aircraft.

SINGAPORE Airlines (SIA) has finalised a US$13.8 billion order for 39 Boeing aircraft in an agreement that was first announced in February this year.

On Tuesday, the airline said in a Singapore Exchange filing that a firm order with Boeing for 20 777-9s and 19 787-10s was confirmed for "additional growth and fleet modernisation through the next decade".

The signing took place on Oct 23 (US time) at the White House in Washington DC, at a ceremony witnessed by US President Donald Trump and Singapore Prime Minister Lee Hsien Loong as part of his six-day official working visit to the US.

SIA CEO Goh Choon Phong said: "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."

Besides the 39 orders, the purchase agreement comprises six options for each aircraft type, which if exercised will enlarge the deal to as many as 51 aircraft, SIA said.

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The 777-9s are intended primarily for long-haul routes and are due for delivery from the 2021/22 financial year.

The 787-10s are to be operated on medium-range routes and are due for delivery from the 2020/21 financial year.

SIA is also due to take delivery of the world's first 787-10 in the first half of 2018, from a 2013 order with Boeing for 30 aircraft.

In addition, SIA signed a 12-year agreement with GE Aviation for the maintenance, repair and overhaul of its 45 GE9X engines that will power its Boeing 777-9 aircraft.

The services agreement is valued at more than US$1.7 billion.

At the 2017 Paris Air Show, SIA Engineering Company Limited and GE Aviation agreed to establish a new engine overhaul joint venture based in Singapore.

The joint venture will provide a full range of engine maintenance, repair and overhaul services for the GE90 and GE9X engines which power the Boeing 777-300ER and 777-200LR, and the Boeing 777X, respectively.

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