Singapore Air’s SilkAir unit orders 54 Boeing jets worth $4.9b

Singapore Airlines’ regional affiliate, SilkAir, said Friday that it will order 54 Boeing 737 jets, which would be worth $4.9 billion at list prices.

The airline said it signed a letter of intent that includes purchase rights for another 14 planes.

Financial terms were not disclosed. Airlines routinely get discounts from list prices on planes.

The order would be a coup for Chicago-based Boeing because SilkAir’s current fleet of 21 planes consists entirely of jets made by Boeing’s European rival, Airbus.

SilkAir plans to order 23 Boeing 737-800 aircraft and 31 of the Boeing 737 Max that is expected to replace the current 737 models in a few years. The planes will be delivered from 2014 into 2021.

SilkAir said it would be the biggest order in its history, but remains subject to negotiating a final purchase agreement. Boeing did not post the results on its website as a firm order.

The 737 is a single-aisle plane used by many airlines around the world for short and medium-length flights. Southwest Airlines has a fleet of more than 500 planes consisting solely of 737s.

The SilkAir news followed an announcement by China Southern Airlines that its Xiamen Airlines subsidiary will buy 40 Boeing 737s to expand international routes.

China Southern said it will pay “significantly lower” than the $3.4 billion sticker price for the planes, which are scheduled to be delivered from 2016 through 2019.

Boeing shares rose 82 cents to close Friday at $72.81.

http://www.cbsnews.com/8301-505245_162-57486594/singapore-airs-silkair-unit-orders-54-boeing-jets/

 

Category: Singapore