Singapore Airlines Ltd said on Friday it should finalize an order for 39 Boeing Co planes price $13.8 billion at list prices when Singapore Prime Minister Lee Hsien Loong visits Washington next week.
In February, the airline said it could order 20 777-9 and 19 787-10 wide-body aircraft as a part of its fleet modernization plans for the following decade, however the deal has not yet been finalized and was placed on Boeing’s order book as a Singapore Airlines order.
The deal was considered a serious blow to Airbus SE in its fight against Boeing within the wide-body aircraft market. Airbus overtook Boeing when it comes to net orders in the primary nine months of the yr – there have been 271 at the tip of September compared with 498 for its American rival.
Lee told CNBC on Thursday that he hoped a deal could be signed with Boeing to purchase more planes for Singapore Airlines during his visit to the U.S. from Oct. 22 to 26.
A Singapore Airlines spokesman said more details concerning the order could be released after a signing ceremony in Washington.
In February, the airline said it had also acquired the choice to order six more aircraft of every type.
Boeing in June reserved orders for 20 777X planes and 19 787-10 planes for an unidentified customer or customers, in order that the Singapore Airlines planes already count towards this yr’s net orders. Boeing declined to comment.
Singapore Airlines is investing in modern, fuel-efficient planes while undertaking a strategic review aimed toward helping it cut costs within the face of growing competition from rivals in China and the Middle East.
Although Boeing’s order is price $13.8 billion at list prices, airlines typically receive discounts on jet orders. In February, Jefferies estimated the worth of the deal at closer to $6.5 billion, or about one-tenth of the U.S. planemaker’s annual sales.
Singapore Airlines is the primary customer for the 787-10, a stretched version of the Dreamliner, having placed 30 firm orders along with the 19 announced in February. Boeing accomplished final assembly of the airline’s first Boeing 787-10 earlier this month, ahead of delivery in the primary half of 2018.
