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.'' He expects the region's travel market to grow robustly in the coming years and SilkAir will be able to maintain its annual double-digit growth rates through the end of this decade and beyond. SilkAir said the selection of Boeing 737 follows detailed evaluations and extensive negotiations with both Airbus and Boeing. SilkAir's decision has come as a blow to European aircraft giant Airbus which has been competing with arch rival Boeing in the single-aisle aircraft segment with its A320Neo. ''The order will enable us to maintain a young and modern fleet, with an aircraft that has a proven track record of strong customer appeal, excellent reliability and low operating costs," Tan said. Xiamen Airlines currently operates an all-Boeing fleet of six 757 airplanes and 77 Next-Generation 737s. The carrier plans to grow expand its operational fleet to 200 airplanes by the end of year 2020. The aircraft will be delivered in stages between 2016 and 2019, and Xiamen Airlines will use the new 737s for more international routes to meet growing passenger traffic in Asia-Pacific and China. Boeing said that the orders will be posted on its website after finalisation of the deal. The 737-800 is the best-selling variant in Boeing's popular Next-Generation family of single-aisle aircraft. It is claimed to be the most fuel-efficient and reliable aircraft in the category today and can seat from 162 to 189 passengers. Boeing's newest family of aircraft 737 Max which is under development, incorporates the latest-technology LEAP-1B engines developed by CFM International to deliver highest efficiency, reliability and passenger comfort in the single-aisle market. The aircraft will build on the reliability of the successful Next-Generation 737s while delivering improved fuel and cost efficiencies. Boeing claims a 13-per cent saving in fuel compared to today's most efficient single-aisle planes and an 8-per cent reduction in operating cost per seat for its 737 Max. The 737 Max's first flight is scheduled in 2016 and deliveries to customers are expected to begin in the fourth quarter of 2017. Ircn 2012, Boeing has so far received orders for 666 737 aircraft, with the largest one being Indonesia's Lion Air for 29 737-900s and 201 737 Max, followed by United Airlines' order for 100 737 Max 9s and 50 737-900 airplanes and Norwegian's 100 737 Max 8 and 22 Next-Gen 737-800s. Source: Domain-b, ***
