February 09, 2017 – The Singapore Airlines has confirmed that it is buying 40 [or possibly more] wide-body aircrafts from Boeing. There is a massive competition in the airline business. Singapore Airlines, or SA, certainly wants to stay ahead in this business by upgrading its current fleet of planes. The demand for wide-body planes is increasing globally. Every airline seems to be preferring them as these planes can accumulate a lot more customers. On average, wide-body planes can have around 400 seats, which is lot more than the number of seats in a typical airplane. According to the news release, SA is planning to buy Boeing 777 and 787 models.
Trump must be dancing right now. :) This deal is worth nearly $14 billion, so this will surely have a positive impact on US trade balance sheet. Trump will love to see US exports increase and this deal will do exactly that. Apart from increasing US exports, this deal will also bring more jobs to US. Trump does not miss anything he can use to his advantage and with manufacturing in USA being a very sensitive issue nowadays, he certainly is going to use this opportunity to gain some points.
Some reports suggest that Airbus was the other contender for this contract; however, they have failed to produce any jets that can compete with Boeing’s wide-body jets.
Singapore Airlines is Singapore’s flag carrier. The company is making nearly $1 billion in operating profits every year. They have a lot of money in their account and they have realized that it is time to upgrade their fleet of planes to improve their services and make it possible for their company to add new destinations to their menu. Customers love to travel in new planes, as they are safer than the old ones and they provide better flying experience. By buying the new jets, Singapore Airlines is going to attract more customers while making more profits. One of the reasons why airlines now are preferring to buy the new wide-body planes is that these new wide planes bring-in more profits. These planes have more seats, which mean that more passengers can ride in each flight.
Singapore Airlines will obviously have to use these wide-body planes for their busy routes because the passenger capacity is larger. They obviously don’t want to see half-filled planes taking flight; to make maximum profits, they would need every wide-body plane to take off with all seats booked.
Boeing, the multinational aircraft manufacturer, has an annual revenue reaching almost $100 billion! But they haven’t received any substantial airplane manufacturing orders in nearly 2 years. This deal will help Boeing boost its annual income.