Deal, no deal

  • Associated Press
  • Wednesday, August 25, 2004 9:00pm
  • Business

SEATTLE – Singapore Airlines, Asia’s most important flag carrier, gave Boeing Co. some good news and bad news, ordering up to 31 of the airplane maker’s long-range 777 jets, but saying it would hold off on deciding whether to buy the new 7E7 Dreamliner.

The contract is a big win for Boeing in its dogfight with European rival Airbus. But the hesitation on the Dreamliner likely rankles the company, as Boeing’s commercial future is heavily reliant on the new model’s success.

Investors seemed unconcerned, however, sending shares of Boeing up $1.59, or 3 percent, to $52.50 in trading Wednesday on the New York Stock Exchange. Shares in Boeing have doubled since early 2003, despite a slight dip in March of this year.

As reported earlier, Singapore Airlines confirmed Wednesday that it had placed a firm order for 18 Boeing 777-300ER jetliners, to be delivered between 2006 and 2010. The company also said it had reserved the option to buy 13 more 777s.

In total, the deal would be worth $7.35 billion at list prices, including spare parts and spare engines. But airlines typically negotiate steep discounts.

The twin-engine 777-300ER – which stands for extended range – can seat about 350 passengers and is capable of such long-range routes as Los Angeles to Singapore.

Singapore Airlines chief executive Chew Choon Seng said Chicago-based Boeing and Airbus competed fiercely for that deal.

But the two manufacturers may continue to do battle over a deal to provide planes for Singapore Airlines’ regional routes. The airline said Wednesday that it evaluated proposals for both the 7E7 and Airbus’ A330-200, and that neither offer currently fits the company’s financial criteria.

Singapore Airlines spokesman James Boyd in Los Angeles said the company is considering both the price of the airplanes and the ongoing cost of operations. He said the company is not ready to make an award now but will continue to look at both companies’ offerings.

Analyst Paul Nisbet of JSA Research in Rhode Island said he suspects the delay could be because Airbus is pitching a new model airplane that would more closely rival the 7E7, which will seat between 217 and 289, depending on model and configuration.

Airbus spokeswoman Mary Anne Greczyn said the company still considers the A330-200 the primary competitor of the 7E7. She would neither confirm nor deny whether Airbus is considering offering a new model. The A330-200 seats 253.

Either way, Nisbet said the delay is a setback for Boeing. Singapore Airlines is known for thoroughly researching airplanes, he said, and others in the industry take their cues from it.

“It’s good for Boeing as far as the 777-300ER, but a delay in making a decision on the 7E7 may cause several other airlines to delay accordingly,” he said.

Aviation consultant Scott Hamilton said the delay, while disappointing, wouldn’t likely have a major impact on the long-term success of the 7E7.

“The 7E7 is a winner airplane,” he said. “This is the best thing that Boeing has come along with in a long time.”

Associated Press

Workers prepare to move a 777-300ER from the paint hangar at Boeing’s plant in Everett. Singapore Airlines, which ordered up to 31 of the planes, opted not to consider the 7E7 in the deal.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.