Boeing the front-runner for $13.8b Singapore Air order: Sources

Boeing is the front-runner as Singapore Airlines closes in on an order for at least 35 wide-body aircraft amid a battle with Chinese and Middle Eastern carriers, people familiar with the matter said. Southeast Asia’s biggest long-distance carrier is considering buying 20 of Boeing’s long-range 777-9 jets, which are set to debut at decade’s end, after studying a rival bid for Airbus Group SE’s A350 aircraft, one of the people said. The carrier also is poised to take at least 19 of the Boeing 787-10, the longest Dreamliner model, the person said. Those aircraft would be valued at $13.8b based on list prices, before the discounts that are customary in the industry. The order could be unveiled this week, said the people, who asked not to be identified because the talks are private. Singapore Air, under pressure to cut costs after two consecutive quarters of declining profit, has been seeking more fuel-efficient aircraft as crude oil prices show signs of a rebound. The aircraft to be purchased would replace aging Boeing models such as the 777-300ER, while giving Singapore Air or its low-cost subsidiaries rights to Boeing aircraft not yet on the market. “The global trend is to replace inefficient planes with efficient ones,” said K. Ajith, an analyst at UOB Kay Hian Pte in Singapore. “This move is to bring down their cost.” The marquee airline is competing against rivals like Emirates that are luring first- and business-class passengers with comforts like in-flight showers. The new deal would provide a critical boost to two high-profile Boeing products amid a tough market for twin-aisle jets. <br/>