Boeing Gets Big Order From Singapore Air
In the largest commercial aircraft order ever, Singapore Airlines will buy $3.3 billion worth of planes from Boeing Co. of Seattle.
The order is for 20 longer-range Boeing 747-400s. Singapore Airlines said that 14 of the planes are on firm order and that it has taken an option on six others. A spokesman for the airline in Los Angeles, Robert Candiotti, said the official announcement of the transaction would be made by Singapore Airlines Chairman J. Y. M. Pillay and Boeing President Frank A. Shrontz in Singapore at noon today.
But a spokesman for Boeing declined to confirm the order. “We don’t announce airplane orders before they are signed,” he said. “This contract has not been signed.” He conceded however, that it is expected to be signed.
Boeing said the largest previous order was placed last November, when United Airlines ordered 110 737-300s and six 747-200s for $3.1 billion.
Singapore, one of the world’s smallest nations, covers an area of only 225 square miles, about half the size of Los Angeles. Nevertheless, it has one of the world’s best airlines with a reputation for superb service. Singapore Airlines currently has 31 aircraft--12 Boeing 747-300s, nine 747-200s, six Airbus A310s and four Boeing 757s.
The airline, which is a favorite of businessmen, flies to 48 cities in 34 countries. It is ranked 13th in size (by revenue passenger miles), carries some 5 million passengers annually and operates 15 flights weekly between Asia and U.S. cities including Los Angeles, San Francisco and Honolulu.
The carrier said it needs the planes in order to fly more non-stop segments. For instance, it is able to use its 747-300s to fly non-stop from Singapore to London. But the daily round trip has to stop for refueling in the Middle East on the return trip because head winds won’t allow a non-stop trip.
Singapore said Boeing had guaranteed that the new 747-400s will be able to fly 8,000 miles without having to refuel. In addition, it said, the new planes are much more fuel efficient than the older versions of the 747.
Boeing said that each of the planes would cost between $103 million and $123 million in today’s dollars. But the spokesman said the prices will ultimately be considerably higher because all contracts for airplanes have escalation clauses. Spare parts and training support normally add another 15% to the price of a plane.
The first 747-400 has not yet been built. Northwest Airlines, which is scheduled to get the first one in late 1988, is the only carrier that previously had a firm order for the plane. Singapore Airlines will get the first of its 747-400s in 1989 and thereafter will receive three or four a year until the order is completed in 1993.
Boeing said such orders “are worked on for a long time, and we know the production rates and the number of employees geared to this order.” Thus, the spokesman said, no additional workers will have to be hired for the Singapore order. The planes will be built in Everett, Wash., 30 miles northeast of Seattle, where 747s and 767s are built side by side.
