SINGAPORE: Singapore Airlines said Thursday it had ordered 39 Boeing passenger planes worth $13.8 billion as it seeks to expand its capacity in the face of growing competition.
The carrier said it had signed a letter of intent with the US manufacturer for 20 of its 777-9s and 19 of its 787-10s, with options for six more of each aircraft, bringing the total to 51 if exercised.
“Today’s major order for widebody aircraft enables us to continue operating a modern and fuel-efficient fleet, providing the SIA Group with additional expansion opportunities to ensure that we retain our industry-leading position,” chief executive Goh Choon Phong said in a statement.
“This order is also another demonstration of our commitment to further growing the Singapore hub, as we will be able to offer even more travel options for our customers.”
The 787-10s, powered by Rolls-Royce Trent 1000 engines, are due to be delivered in the 2020/21 financial year, while the 777-9s, fitted with General Electric’s GE9X engines, are scheduled to arrive in 2021/22.
SIA has a fleet of 182 planes across five brands which include the main airline, regional wing SilkAir, medium- to long-haul budget carrier Scoot and low-cost arm Tiger Airways, as well as its cargo business.
Aviation analyst Shukor Yusof said the deal was SIA’s attempt to move into its next stage of growth.
“The new Boeing 787 aircraft are likely to be given to Scoot and Tiger Airways, which will be used for shorter journeys around the region,” said Shukor of Malaysia-based aviation consultancy Endau Analytics.
He said the 777-9s will complement the airline’s fleet of Airbus A350s, which it uses for non-stop flights to San Francisco.
SIA has been facing tough competition from Middle Eastern carriers on long-haul routes and budget airlines within the region.
On Tuesday it said it booked a net profit of Sg$177 million ($125 million) in the third quarter to December, down 35.6 percent year on year, and warned 2017 would be “another challenging year.”
SIA pointed to “tepid global economic conditions and geopolitical concerns, alongside market headwinds such as overcapacity and aggressive pricing by competitors.”
It also said “loads and yields for both the passenger and cargo businesses are projected to remain under pressure.”
SIA shares closed at Sg$9.94 Thursday, up 1.43 percent from the previous day. The orders were announced after the market closed.
Singapore Airlines in $13.8 bn Boeing deal
Singapore Airlines in $13.8 bn Boeing deal
Riyadh Cement Co. to fully switch to natural gas by 2027: CEO
RIYADH: Riyadh Cement Co. is expected to fully rely on natural gas as an alternative to liquid fuel in its operational processes at the beginning of 2027, CEO Shoeil Al-Ayed confirmed to Al-Eqtisadiah.
The company had announced on Tadawul at the beginning of the year the signing of a contract with Chengdu Design & Research Institute worth SR59.4 million ($15.8 million), as part of the liquid fuel displacement program.
It noted that the contractor has taken over the site and begun project implementation as of the announcement date, and the advance payment has been made to it according to the payment terms.
In response to the sector’s suffering despite massive projects in the country, Al-Ayed told Al-Eqtisadiah: “The cement sector during the third quarter of 2025 faced some challenges represented in high clinker inventory levels for most companies, which reflected an increase in supply exceeding the actual demand in the market.”
Regarding the existence of a price war in the sector to gain market share, the top official indicated that the market has not witnessed a real price war, but rather has been subjected to increasing pressures that led to a noticeable decline in selling costs. This negatively impacted the profitability levels of cement companies during that period, according to the CEO.
The Saudi cement sector, listed on TASI, has faced significant pressure in recent years, resulting in declining profits, with the latest being a drop of more than 50 percent in third-quarter earnings, despite an increase in sales.
The shift to natural gas will be complete without phases
The CEO added: “The shift to using natural gas will be complete in one go, without phases or a gradual transition,” confirming that full reliance on gas will be immediate upon the start of application.
Regarding the expected annual cost savings upon completing the shift to gas, he indicated that this depends on the natural gas price at the time, noting that there is currently no information available about the accounting price that will be applied to the company.
Al-Ayed affirmed that the benefits of the project are not limited to the financial aspect but extend to enhancing operational sustainability, reducing the carbon footprint, and improving the environmental impact at the company’s plants.
Riyadh Cement among the first companies to benefit from the Industrial Sector Competitiveness Program
Regarding benefiting from the Industrial Sector Competitiveness Program, the top official mentioned that the company was among the first to benefit directly from the program’s support and also contributed to supporting other companies that joined the initiative.
He explained that engagement in the program helped the company reduce production costs and improve operational efficiency.
Riyadh Cement’s step comes within the framework of adjusting the prices of fuel products used in production at the beginning of 2026, following annual increases in past years, which included cement companies and industrial firms in the country.
The company stated in a disclosure on Tadawul at the beginning of the year that the adjustment of fuel product prices would lead to a 6 percent increase in production costs, and that the financial impact would start from the first quarter of this year.
To address this, the company indicated that it will continue to search for ways to reduce the financial impact of this adjustment.
It is worth noting that the firm signed two contracts with the Electrical Grid Station worth SR85 million to establish a turnkey electrical station at the company’s plant in the Nisah region, aiming to complete the connection of electrical service to the facilities.
