Singapore Air Plans to Buy More
Aircraft, Airbus's Leahy Says
Singapore Airlines Ltd. (SIA),
Southeast Asia's biggest carrier, plans to buy more aircraft, Airbus SAS said,
as the region's economic growth spurs air travel demand.
Airbus will suggest its A350
model to Singapore Air, John Leahy, the planemaker's chief operating officer,
said in an interview in Singapore today.
"We're in discussions with them,"
Leahy said. "They are also looking at other aircraft. They issued a request for
proposal on that to Airbus, to Boeing, to engine manufacturers. Anything else, I
can't comment."
Singapore Air, the first carrier
to fly the Airbus A380, in October agreed to order five more of the superjumbos
and 20 A350-900s as it adds fuel-efficient planes amid competition from Gulf
airlines. Asia-Pacific will lead the demand for new aircraft as economic growth
helps boost the number of middle class population by almost five-times in 20
years, Leahy said.
"We discuss fleet requirements
with manufacturers on a regular basis, in line with our longstanding policy to
maintain a young and modern fleet," said Nicholas Ionides, a spokesman for the
carrier. He declined to elaborate, saying discussions are confidential.
The A350 is Airbus's biggest
twin-engine model, with seating for about 314 passengers on the A350-900
variant, which has a list price of $287.7 million. The larger A350-1000 can hold
350 passengers and has a published price of $332.1 million. Buyers typically get
a discount from list prices.
Maiden Flight
The A350 is set for its maiden
flight in the middle of this year. The aircraft's small and mid-sized variants
compete with the Boeing 787 Dreamliner, while the large model is positioned
against the popular 777.
Airbus would acquire Singapore
Air's five A340-500s as part of the October order. These planes will leave the
carrier's fleet in the fourth quarter of this year, forcing the end of non-stop
services to Los Angeles as well as Newark, the world's longest commercial
flight.
The carrier transferred its 20
on-order Boeing (BA) 787s, due to start arriving in 2014, to low-cost arm Scoot
from the main Singapore Air unit. Scoot began services using 777s in June.
Singapore Air's regional unit SilkAir separately signed a provisional agreement
for 54 Boeing 737 planes in August.
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