At the end of last month, Singapore Airlines (SIA) announced that it will buy 20 new Airbus 350s and five new Airbus 380s valued at US$7.5 billion (S$9.2 billion). Deliveries will begin in 2017. The last huge capital outlay was in June 2006 when it bought 29 planes worth the same amount of US$7.5 billion.
US$7.5 billion is a major capital expenditure and it is characteristic of many airline companies. Fleet renewal is essential to remain competitive, especially for SIA. If SIA were not to inject capital to acquire new planes, it would lose its edge as being one of the best airlines in the world. Also, no thanks to increasing competition from no-frills airlines, SIA has to be on its toes.
SIA currently operates 101 ......
At the end of last month, Singapore Airlines (SIA) announced that it will buy 20 new Airbus 350s and five new Airbus 380s valued at US$7.5 billion (S$9.2 billion). Deliveries will begin in 2017. The last huge capital outlay was in June 2006 when it bought 29 planes worth the same amount of US$7.5 billion.
US$7.5 billion is a major capital expenditure and it is characteristic of many airline companies. Fleet renewal is essential to remain competitive, especially for SIA. If SIA were not to inject capital to acquire new planes, it would lose its edge as being one of the best airlines in the world. Also, no thanks to increasing competition from no-frills airlines, SIA has to be on its toes.
SIA currently operates 101 ......
