Singapore Air Orders Boeings After A380 Delay

Singapore Airlines on Wednesday announced an order for 20 Boeing 787-9 Dreamliners worth USD$4.52 billion at list prices and said it would take rights for another 20 planes.

The order was seen as a further blow to Airbus after the planemaker revealed delays of at least six months in deliveries of the A380 on Tuesday.

The 787-9, which can carry between 250 and 290 passengers and will have range of 15,900 to 16,300 km (9,900 to 10,200 miles), will be used for flights to north Asia, India and the Middle East.

Singapore Airlines has not yet chosen the engines for the aircraft and said it will fund the purchase out of its cash flow.

Analysts said the airline's decision was not entirely unexpected after its Chief Executive, Chew Choon Seng, said in April Airbus had not done enough to make the A350 competitive and should have countered Boeing's proposed new fuel-efficient plane with a new one of its own.

"It's no surprise that Singapore Air was going to go with the 787 after its chief executive's derisive comments on the A350 in April. But the timing of the order announcement makes for a particularly bad day at Airbus," said Richard Pinkham, a consultant at the Centre for Asia Pacific Aviation in Singapore.

Chew's comments carry great weight in the industry because Singapore is a prized customer for both manufacturers.

EADS said it would still deliver the first $285 million A380 to Singapore Airlines this year, but would slow down deliveries from next year onwards because of problems with the installation of electrical wiring.

"We are disappointed with the news of further delays, but will work with Airbus to minimize the delays and their impact," said a spokesman for Singapore Airlines, which plans to be the first to fly the world's biggest passenger aircraft at the end of this year.

The airline's spokesman said it was "exploring issues" regarding compensation for the delay with Airbus but stressed that its order for Boeing aircraft was not linked to the latest A380 delay.

(Reuters)