Singapore Airlines has opted for more 777Xs as it defers over S$4 billion in orders from Airbus and Boeing.
As a result of the new agreements, some of the aircraft in the SIA Group’s order book will be delivered over a longer period than originally contracted, with the delivery stream spread out beyond the immediate five years.
This says the airline will enable it to defer more than S$4 billion of capital expenditure
between FY20/21 and FY22/23 to later years.
“It would also recalibrate the rate of introduction of capacity, following the disruption to the demand for air travel as a result of the Covid-19 pandemic,” the airline said in a statement.
“In addition to spreading out its aircraft delivery stream, SIA has been able to respond
to changes in its projected long-term fleet needs beyond FY25/26 with the
conversion of 14 Boeing 787-10 aircraft into 11 additional Boeing 777-9 aircraft.”
Singapore Airlines Chief Executive Officer Goh Choon Phong said, “the agreements with Airbus and Boeing are a key plank of our strategy to navigate the disruptions caused by the Covid-19 pandemic.
“They allow us to defer capital expenditure and recalibrate the rate at which we add capacity, aligning both with the projected recovery trajectory for international air travel.
“At the same time, they retain our commitment to operating new-generation aircraft
that will enable the SIA Group to continue offering greater comfort and innovative
products to customers, further drive operating efficiency and support ongoing
efforts to materially lower our carbon emissions. These will help to cement our
leadership position in the airline industry as it recovers from the pandemic,” Mr Goh said.
The SIA order book now looks like this:
- Airbus A320 – 35
- Airbus A350-900 – 15
- Boeing 737-8 – 31
- Boeing 787-10 -20
- Boeing 777-9 -31