Re: Singapore picks the A340-500 over the 777-200X

Date:         29 May 98 02:44:18 
From:         Marc Schaeffer <>
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Karl Swartz wrote:
> Today's Wall Street Journal (p. C15 in the Western Edition) reports that
> Singapore ordered five Airbus A340-500s on Friday and took options on
> five more (Singapore has always executed all its options in the past).

This isn't true for the A343 options which SIA had. None of those (10 ?)
options was converted.

> First delivery is set for 2002.  These aircraft will be used for very
> long range non-stops, such as SIN-LAX.

Another route which was named was SIN-SFO. I believe that the SIA order
can be considered as a very important signal for the future orders in
this category. The choice of the Japaneese carriers and of NW should be
pretty clear. I don't believe that the 772X can get off the ground with
orders from AA and DL, their exclusive suppliers agreement would imply
a huge dsicount. Also the total orders won't be sufficient to get the
bird launched. The question is : can Boeing get within the next months
orders or LOIs for the 772X from the Japaneese. I also doubt that CX
will make a choice in this category within the next 24 months, the asian
crisis hasn't even reached the maximum. It was also announced that QF
won't order any 300 seater before the turn of the century. Another good
Boeing customer which doesn't come into consideration. For those
interested I have summarized the orders for the A340NG at

> Boeing's offering in this competition was the 777-200X, and it was
> widely thought that Singapore's order might be the launch order for this
> derivative.  So far, Boeing only has an MOU (not a firm order) for 15 of
> the planes from Malaysian Airlines.  Singapore's A340 order continues a
> clean sweep by the A340-500/600 over longer-range 777 derivatives in the
> last year, and is surely a hard hit for Boeing.

If it is a hard hit for the 777 it should enable Boeing to free manpower for
working on new derivatives of the 747 to make life harder for the A3XX.

Marc Schaeffer, Luxembourg
The AIRCRAFT ORDERS    website