SIA to place US$13.8b order for Boeing aircraft to drive additional growth

SINGAPORE Airlines (SIA) has agreed to place firm orders with Boeing for 20 777-9 and 19 787-10 aircraft, with the aim of driving additional growth and fleet modernisation for the company through the next decade, it said in an announcement on Thursday.

SIA said it signed a letter of intent with the US airframe manufacturer the same day; it comprises the 39 firm orders, as well as six options for each aircraft type - which, if exercised, will enlarge the deal to as many as 51 aircraft.

The proposed order, valued at US$13.8 billion, based on published list prices, includes flexibility for the SIA group to substitute the 787-10 orders for other variants of the 787 family.

The 777-9s are due for delivery from the 2021/22 financial year and the 787-10s for delivery from the 2020/21 financial year, SIA added.

"Today's major order for widebody aircraft enables us to continue operating a modern and fuel-efficient fleet, providing the SIA Group with additional expansion opportunities to ensure that we retain our industry-leading position," said SIA's CEO, Goh Choon Phong.

SIA shares finished Thursday 14 cents up at S$9.94.

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