Singapore Air expands 777X order in boost to jumbo’s heir

Bloomberg

Singapore Airlines Ltd is swapping some of its Boeing Co wide-body jetliner orders for the larger 777X, giving a boost to the model as part of an agreement to slow near-term deliveries from the US planemaker.
The airline will pare commitments for the Boeing 787-10 Dreamliner by 14 planes, while adding 11 777-9s to its existing order, according to a statement.
The change brings Singapore Airlines’ total orders to 31
for Boeing’s largest aircraft, a vote of confidence in the heir
to the manufacturer’s iconic
747 jumbo.
The move, combined with an earlier agreement to defer Airbus SE deliveries, will delay more than S$4 billion ($3 billion) in capital spending, Singapore Airlines said. The carrier has been hit especially hard by Covid-19 travel restrictions because there’s no domestic market to rely upon in the city-state.
With the latest agreement, Singapore Airlines’ expenditure on aircraft will fall every year until March 2024. For the current fiscal year, its spending
will drop to S$2.8 billion from S$5 billion. The carrier didn’t provide further detail on delivery timing by aircraft type.
The added 777X orders — the first since well before the coronavirus pandemic — are a shot in the arm for the beleaguered wide-body. The aircraft has suffered multiple delays in its entry into service, leading Boeing to take a $6.5 billion charge with
its fourth-quarter earnings. The planemaker revealed in a filing last week that about a third of the jet’s order haul was at risk.
Boeing shares rose less than 1% to $212.27 at 10:34 am
in New York. The stock had
declined 37% during the 12 months through Monday, the worst performance among
the 30-member Dow Jones Industrial Average.
“We are honoured that Singapore Airlines is reaffirming its commitment to the 777-9,” Boeing said in a statement.