Big win for Boeing: Airbus operator SilkAir commits to 54 737s

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Published: August 3, 2012

737 in SilkAir livery. Courtesy, Boeing

Singapore Airlines regional affiliate SilkAir, which has an all-Airbus fleet, has moved in a different direction with a letter-of-intent (LOI) to purchase 23 Boeing 737-800s and 31 737 MAX aircraft valued at $ 4.9 billion at list prices. The LOI also includes 14 options and gives SilkAir the ability to switch among variants within the 737 product line, the regional carrier said.

“The order is the largest in SilkAir’s history and remains subject to the negotiation of a final purchase agreement,” the airline said in a statement. “Deliveries are due to begin in 2014 and continue to 2021, by which time the airline’s fleet will have more than doubled in size.” The aircraft will be used both to replace older A320 family aircraft and to grow capacity.

SilkAir CEO Marvin Tan said the selection was made following “detailed evaluations and extensive negotiations with both Airbus and Boeing. 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.”

SilkAir now operates a fleet comprising 21 A319s/A320s with three more A320s slated to be delivered by the end of next year.

Boeing confirmed the LOI and said it “looks forward to finalizing” the deal.

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