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Posted on 10/02/2006 6:50:08 AM PDT by COEXERJ145
Singapore Airlines (SIA) has said it has signed a purchase agreement to buy 20 Boeing 787-9 jets with options for another 20 of the planes.
The agreement confirms plans announced in June, when the carrier said it had signed a letter of intent with US manufacturer Boeing, the company said in a statement.
SIA said the purchase agreement was signed last week and the planes, the latest variant of the 787 series known as the Dreamliner, should be delivered between early 2011 and mid-2013.
Based on Boeing's catalogue prices, the 20 firm orders are worth 4.52 billion US dollars.
SIA plans to deploy the 787s on routes to North Asia, the Indian subcontinent and the Middle East.
Boeing bills the planes as offering unmatched fuel efficiency. They can carry between 250 and 290 passengers and have a range of 8,600 to 8,800 nautical miles (15,900 to 16,300 kilometers).
(Excerpt) Read more at todayonline.com ...
Ping to you. :-)
Boeing continues eating Airbus's lunch. Serious problems coming to the EU socialist.
If you want on or off my aerospace ping list, please contact me by Freep mail.
Woo Hoo Hoo!
Bumperoo!
How do options for additional planes work, and what advantages and disadvantages do they have for the airline?
Not sure, but maybe it freezes the price and/or saves a spot in the production schedule.
Options help to secure production slots. Not exercising options is a lot cheaper than cancelling a firm order. The 787 program is so popular that it is just about impossible to order one now for delivery before 2010 or 2011. Getting options now allow gives them the first shot at prodution slots several years from now without having to pay the full cost of a deposit now. At some future date, the airlines have to convert options to firm orders or they lose the production slots.
And Boeing has delivered 400-500 copies.
Am I correct in assuming there is a cost for an option, but less than a deposit for a firm order?
Some reasoning is that the bigger jets can push more people through the slot-limited hub airports, but unfortunately for them apparently the whale's wake turbulence means there has to be much more time between landings anyway, kind of blowing the advantage.
Airbust is now saying the A350 won't be avaiable till 2013 at the earliest. 5 years after the 787's have already started being delivered to customers.
With all the troubles with the A380, all the engineering resources that would be going towards the A350 is now still working on the A380 trying to fix that overweight POS.
I read were Airbust, due to the employment laws in France, is relunctant to hire new engineers for the A350 project since its impossible to fire them for atleast 5 to 7 years after you hire them.
Does that count the accelerated production they're planning?
Yes. They haven't made a decision about whether to start a second production line. But even if they do, it wouldn't be up till 2011.
Yes. The option does have the advantage of locking in a price on a predetermined number of aircraft deliverable a certain dates without having to pay the full deposit fee for a firm order.
QANTAS and Singapore.
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