Boeing secures $8.4-bn deal with two Asian airlines

The world's largest aircraft manufacturer Boeing Inc said yesterday that the company has secured two major deals worth approximately $8.4 billion from Singapore's SilkAir and Asia's largest carrier China Southern Airlines Co for the supply of 94 advanced Boeing 737 aircraft.

Boeing said that it has received a firm order from SilkAir, the regional wing of Singapore Airlines (SIA) for 54 Boeing 737 aircraft for approximately $4.9 billion. The order includes 31 Boeing 737 Max 8 aircraft and 23 Next-Generation 737-800 airplanes with purchase rights for additional 14 737s of its choice.

Xiamen Airlines, in which China Southern Airlines Co owns a controlling 51-per cent stake, has ordered 40 Boeing 737-800s valued at around $3.5 billion based on the listed price of the aircraft.

SilkAir currently flies to 41 destinations across 12 countries in the Asia-Pacific region. With the order for the new Boeing airplanes, the airline plans to more than double its present all-Airbus fleet of 21 A319s and A320s with three more A320s due for delivery by the end of next year.

Deliveries of the Boeing 737 aircraft are expected to begin in 2014 and continue to 2021, and will be used for both fleet renewal and expansion.

SilkAir chief executive Marvin Tan said, ''We continue to see very strong growth within the region and these new aircraft will position SilkAir well. They will enable us to spread our wings to even more destinations and increase capacity on existing routes, contributing to the overall SIA Group network.''