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Singapore Airlines to Buy 50 Aircraft : Industry: Boeing and McDonnell Douglas given $8.6 billion in orders and options.

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From Times Wire Services

Singapore Airlines, propelled by recent alliances with American and European airlines, said today that it has placed orders and options for 50 aircraft from Boeing Co. and McDonnell Douglas Corp. worth $8.6 billion.

The airline plans to buy 30 747-400 aircraft from Boeing and 20 MD-11s from McDonnell Douglas, the company said in a statement.

Boeing has secured a firm order for 15 aircraft and an option for 15, while McDonnell has orders for 5 aircraft and an option for 15 others, the airline said.

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Total cost of the purchase including engines and spares is $8.6 billion, the airline said. The aircraft are scheduled to be delivered between 1994 and 1999.

The order was the largest ever by Singapore Airlines, which recently reached agreements with Swissair and Delta Air Lines.

The three airlines have a combined network covering 237 destinations in 64 countries, Singapore Airlines officials said.

Officials at Seattle-based Boeing did not answer phone calls asking for comment. Spokeswoman Barbara Anderson at St. Louis-based McDonnell Douglas declined to comment.

Singapore Airlines is evaluating engines to power the aircraft, the airline said in a statement without giving details. Three companies, for example, make engines for the 747-400, including Pratt & Whitney, Rolls-Royce and General Electric.

“Singapore Airlines should be able to fully finance the purchase, but it may take advantage of available financing . . . that can reduce the cost of acquisition,” the airline said.

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The statement said Singapore Airlines plans to grow at an average rate of 8% a year in the 1990s.

The airlines said that by 1999 it will have a fleet of between 35 and 50 B747-400s supplemented by the MD-11s, some Airbus A310-300s and possibly a fourth aircraft type to be introduced for regional operations.

In December, Singapore Airlines concluded an agreement with Swissair to help the Asian company gain access to more European cities ahead of the formation of a single European Community market in 1992.

Three months earlier it signed a pact with Delta providing for cooperation in marketing, including special through-fares and sharing of airport terminals and facilities.

At a later stage the Delta deal will extend to other areas such as joint purchase of goods and services, training and engineering and maintenance.

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