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Singapore Airlines announces $17bn aircraft order from Airbus and Boeing

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Order includes 30 next-generation Boeing 787s in boost for manufacturer's Dreamliner programme

Singapore Airlines has announced new aircraft orders valued at more than $17bn (£11.3bn) shared between the big two manufacturers, Airbus and Boeing.

In a boost for the latter's troubled Dreamliner programme, Singapore has placed an order to secure the first 30 of the next generation Boeing 787s, the 787-10X. The deal is dependent on Boeing itself deciding to proceed with manufacturing the plane, a slightly larger version of the current model with more seats and cargo space.

Meanwhile, the airline has placed firm orders for 30 A350-900s from Airbus, to be delivered in 2016-17, with options for 20 more planes – potentially upgrading these to the larger A350-1000 model. Some will be used to replace the existing craft but the order represents some likely fleet expansion.

The order is seen as reaffirming Singapore's commitment to the premium medium- and long-haul market, where it has faced increasing competition from the Gulf carriers, after it launched a low-cost subsidiary, Scoot, in 2011.

The Singapore Airlines chief executive, Goh Choon Phong, said: "Today's aircraft orders are among the biggest in Singapore Airlines' history, helping to ensure that we retain our industry-leading position. They demonstrate our commitment to the Singapore hub and our confidence in the future for premium full-service travel.

"These new aircraft will provide opportunities to grow and renew our fleet and enhance our network, benefiting customers by offering more travel options and the latest in-flight cabin products."

The new, stretched version of the Dreamliner has been mooted by Boeing for some time – a plane that would offer about 50 more seats, sacrificing some of the 787s famed range to make it more suitable for the busier routes around Asia.

However, the project has been on ice as Boeing struggled to return its pioneering plane to the sky after recurring battery fires saw the entire worldwide fleet grounded earlier this year.

Singapore has a record as an early adopter, having been the first airline to fly the Airbus A380, the world's largest passenger aircraft.

Thursday's Airbus deal is the third order from Singapore Airlines for the A350 XWB (extra wide body), now totalling 70 planes. Airbus's chief operating officer, John Leahy, said it was a "major endorsement" for a plane that would represent a "step-change" in the market.

The aviation consultant John Strickland said: "Singapore has had a significant part of its fleet made up of more expensive, four-engine aircraft which are too big for some routes. These orders will reduce average capacity while putting it back in the leading edge of new-generation long-range twin jets which will offer superb operating economics without excess numbers of seats. This, combined with its legendary service reputation, should allow it to recover profitability and market share."


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