Tue, Dec 27, 2005
Who Will Place The Bigger Boeing Order?
Singapore Airlines is
rumored to be near to completing a deal that would match or exceed
the recent $10 billion order rival Australian carrier Qantas placed
with Boeing.
According to the Queensland Courier-Mail, SIA may announced the
deal before the end of the year. The paper quoted reports in the
Chicago Tribune and the Boston Globe that Singapore may purchase
several 777-200LRs, as well as a large number of 787 Dreamliners
and even up to six 747-400 Advanced freighters.
Singapore has also lobbied the Australian government for rights
to operate direct routes from the land Down Under to the US --
routes that reportedly generate as much as 15 percent of Qantas'
profits.
Should the deal become finalized, SIA would reportedly operate
the long-range 777-200LR on the lucrative Sydney-Chicago route, at
less cost per passenger than Qantas currently nets flying 747s on
the route.
As was reported earlier this month in
Aero-News, Qantas shocked many analysts with its huge
order for as many as 115 of Boeing's new advanced medium-range
airliner, the 787 Dreamliner.
Seemingly left out of
the Singapore Airliners deal is Boeing rival Airbus, who has
already sold SIA 10 of the A380 superjumbo airliner, with options
for 15 more. The carrier also operates five A340s (right). SIA
is reportedly leaning towards Boeing this time around, however,
with Airbus's only chance to get in on the deal lying in the
European Consortium's willingness to heavily discount its
aircraft.
"This is one of the last major Asian campaigns to be resolved
and Airbus, whose A340 Singapore currently flies, will no doubt be
slashing its prices to regain some market share after a triumphant
year in the region," Banc of America securities analyst Nick
Fothergill said.
A Boeing spokesman refused to comment on the rumors, saying only
the company did not comment on ongoing negotiations.
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