Singapore Airlines Set to Finalise $13.8 billion Boeing Order Next Week

On Friday, Singapore Airlines Ltd said that it would finalise an order for 39 Boeing Co aircraft that is worth $13.8 billion at list prices when Lee Hsien Loong, the Singaporean Prime Minister, visits Washington D.C. next week.

In February, the airline said that it would order twenty 777-9, and nineteen 787-10 widebodies as part of proposals to modernise its fleet over the next ten years. However, the deal is yet to be finalised and recorded in the order book of Boeing as a Singapore Airlines order.

The deal was observed as a major blow to Airbus SE as it battles against Boeing in the widebody market. Airbus has delayed Boeing in terms of net orders in the first nine months of 2017, with 271 at the end of September against 498 for its U.S. rival.

On Thursday, Lee notified CNBC television that he hoped that a deal would be finalised with Boeing to acquire more aircraft for Singapore Airlines during his visit to the United States from October 22 to 26.

A Singapore Airlines spokesperson said that additional details regarding the order would be announced after the signing ceremony in Washington.

In February, The airline said that it had also acquired options to order an additional of six more aircraft of each type.

Boeing recorded orders for twenty 777Xs and nineteen 787-10 aircraft for an unidentified customer or customers in June, making it possible that the Singapore Airlines aircraft are already counted in 2017’s net orders. Boeing refused to comment.

Singapore Airlines is investing in modern and fuel-efficient aircraft while at the same time engaging in a strategic review that is designed to help slash costs amid increasing competition from Middle Eastern and Chinese rivals.

While the Boeing order is said to be worth $13.8 billion at list prices, airlines usually receive discounts on jet orders. In February, Jefferies estimated the value of the deal at closer to $6.5 billion, or around a tenth of the annual volume of the U.S. planemaker.

Singapore Airlines is considered as the launch customer for the 787-10, the Dreamliner’s stretch version, having made thirty firm orders in addition to the nineteen that were announced in February. Boeing completed final assembly of the first 787-10 of the airline earlier this month ahead of delivery in the first half of 2018.