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
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
