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.

FMI: www.singaporeair.com, www.boeing.com