SQ delay 7E7 order - consider 'A350'

[kuningan]

Flight International report that SQ finalising 777-300ER deal with Boeing (18 orders + 13 options) as part of 747 replacement, but delaying for 12 mo 7E7 decision - AB proposing 'A350' as modified A330-200 - wing & engine mods - wonder if this will be a 'real' plane or 'spoiler'?

[humble_dor]

Does anyone know what A350 is about ?

[kuningan]

Airbus is also proposing the "A350" to other carriers including Qatar Airways, Lufthansa and Northwest Airlines, say the sources. It would be available shortly before the 7E7's 2008 service entry, they add, and would have the A330-200's fuselage, but substantial wing modifications and more-efficient engines. ...but nowt on airbus.com

[akerosid]

I don't see the A350 (which sounds like a reworked 332, an aircraft SQ has rejected before) as a runner. I think the real reason for SQ's decision is that it wants to see the effect of the new low cost carriers on its short haul operations. Remember that the old A310s flew (with a few exceptions such as flights to PER and Japan) within a 4 hr radius of SIN; this is the same range as the low cost carriers' A320s and with the competition they're likely to provide, the 7E7-3 might not necessarily be the best idea. Or at least, they'll want to wait and see how much of an impact the new carriers will have on their existing operations.

[HectorusRex]

Singapore Air Sets $7.35 Bln Boeing Order
Wed Aug 25, 2004 04:37 PM ET

By Katherine Espina and Kathy Fieweger
SINGAPORE/CHICAGO (Reuters) - Singapore Airlines Ltd. (SIAL.SI: Quote, Profile, Research) plans to buy up to 31 Boeing Co. (BA.N: Quote, Profile, Research) long-range 777-300ER planes worth about $7.35 billion, the carrier said on Wednesday.

The order from Asia's most profitable airline is a big win for Chicago-based Boeing, whose deliveries of commercial jets slipped below those of rival Airbus for the first time last year.

Boeing, whose shares on Wednesday rose to the highest level since before the Sept. 11 attacks, recently lost out to Airbus on a multibillion-dollar order from Virgin Atlantic Airways (VA.UL: Quote, Profile, Research) .

"The relatively large size of the order, combined with the source of the order being Singapore Airlines, which we consider an intelligent and financially strong aircraft buyer, sends a favorable signal regarding the outlook for air travel growth in Asia in years ahead," said Credit Suisse First Boston analyst Jim Higgins.

The 777-300ER aircraft will be powered by engines from General Electric Co. (GE.N: Quote, Profile, Research) , Singapore Air said. It said 18 planes will be ordered for delivery between 2006 and 2010, and the rest will be subject to the exercise of purchase rights.

The potential value of the engine order for the first 18 aircraft is more than $800 million, according to GE Aircraft Engines of Evendale, Ohio. The new GE90-115B engine, which entered service earlier this year, powers the 777-ER.

Rolls-Royce Group Plc. (RR.L: Quote, Profile, Research) supplies engines for Singapore Air's other 777s but does not offer an engine for the 777-300ER, a heavyweight version.

Singapore Air, known for its young fleet and premium service, asked airframe manufacturers Boeing and Airbus (EAD.DE: Quote, Profile, Research) (EAD.PA: Quote, Profile, Research) in February to tender for an order.

POPULAR PLANE

The 777-300ER is the world's largest twin-jet, offering low maintenance by having just two enormous engines but long range and almost the seating capacity of the four-engine Boeing 747-400 jumbo. It competes with Airbus's A340-600.

"With its use of new-generation avionics and materials, and its higher operating efficiency, the B777-300ER will deliver lower operating costs," said Singapore Air Chief Executive Officer Chew Choon Seng.

The order will allow the airline to achieve capacity growth of 4 percent to 6 percent a year, the company said. It would cover the medium- and long-haul needs of the 57 percent government-owned airline over coming years.

Singapore Air, Boeing's largest customer for the 777 aircraft, has a fleet of 89 planes, including 55 Boeing 777s, 29 Boeing 747s and five Airbus A340-500s, with firm orders for an additional four B777s.

The airline also has 10 of Airbus's colossal 555-seat A380s on order, and plans in the spring of 2006 to become the world's first carrier to fly the plane.

Chew said the evaluation process had been comprehensive and the competition between Airbus and Boeing for the order had been very keen.

He said the Boeing deal would be financed largely from internal cash flows, but the airline might consider options such as leasing or debt financing if terms were attractive.

The carrier also said it had decided not to place new orders for regional aircraft despite asking for proposals from manufacturers earlier.

It said the airframe makers have offered the Airbus A330-200 and the new Boeing 7E7 for evaluation but the proposals did not meet the carrier's financial criteria.

Airbus is co-owned by European aerospace company EADS and Britain's BAE Systems (BA.L: Quote, Profile, Research) .

Boeing shares were up $1.59 or 3.12 percent at $52.50 on the New York Stock Exchange.

[MarkD]

Maybe SQ used the "A350" to squeeze a better deal from Boeing, much as IB apparently did the reverse when getting A340s...

[TURIN]

Will the -300ERs have remote oil fillers for their GE engines to enable in-flight oil servicing? :E

That or an oil tank the size of a small car should do the trick. :ok:

[rotornut]

Reuters
Airbus says looking at new jet opportunities
Monday August 30, 9:12 am ET

PARIS, Aug 30 (Reuters) - European plane maker Airbus SAS said on Monday it had begun looking at developing a new jet, after a report in the Sunday Times newspaper said the company was planning a rival to Boeing's planned 7E7.
Airbus declined to comment on whether it was actively working on a new derivative of its A330-200 that would compete directly with the fuel-efficient, mid-range 7E7, as the paper reported.

But the jet maker said that with major development work on its 555-seat A380 superjumbo nearing completion, it was actively assessing possibilities for another jet.

"Now that the A380 is coming close to its first flight and the major development phase is nearing completion, we are starting to look at what is next," said Airbus spokeswoman Barbara Kracht. "There are various options. It is premature to say anything else."

Since Boeing gave the final go-ahead for the 7E7 in April, analysts have expected Airbus to respond with a derivative of its A330-200, which itself is only six years old.

Its A380 is due to enter service with airlines in the first half of 2006 and make its first test flight by mid-2005.

Boeing's 7E7, dubbed the Dreamliner, is scheduled to arrive in 2008. The U.S. company plans to use new, lighter materials and more efficient engines to make it less costly to fly.

The Sunday Times article said Airbus engineers had already begun work on a new plane, tentatively named the A350. The paper said the plane would be based on the A330-200, but have modified wings and engines. It said Airbus had talked with engine makers about the plane.

At the Farnborough air show last month, the chief executive BAE Systems, which owns 20 percent of Airbus, said he believed recent threats from Boeing over alleged state subsidies for Airbus were a ploy to hamper the European company's ability to develop a rival to the 7E7.

[Torquelink]

Interesting if true. It seems only a matter of weeks ago that Leahy was saying the 332 was competitive enough with the 7E7 and they didn't see the need for an update - of course that was clearly b*****s at the time but it's interesting how quickly Airbus seem to have changed their minds!
:=