Singapore Airlines in talks for major new jet order, sources say

Singapore Airlines SIAL.SI (SIA) is in talks with Airbus AIR.PA and Boeing BA.N to buy at least 50 of the industry's biggest jets, as it plans a next phase of growth from next decade, two industry sources said.

The Southeast Asian carrier is seeking offers for more 400-seat Boeing 777X, the industry's largest current model, or for the slightly smaller Airbus A350-1000, they said. Talks are at an early stage but could include options for dozens more jets.

SIA said it regularly reviews fleet renewal plans and declined to comment on "any confidential discussions that we may or may not be having". Airbus and Boeing declined to comment.

SIA is one of the largest buyers of long-haul jets, with a reputation for meticulous and closely held aircraft negotiations that can influence fleet decisions worldwide.

It said last month it would continue to expand capacity even as some rivals cut flights ‌due to higher oil prices.

The airline is a longstanding operator of the Boeing 777 mini-jumbo and was an early customer for the 777X successor, which has run into significant delays.

LARGER VARIANTS

The Singapore talks could also help manufacturers, notably Airbus, gauge demand for larger aircraft variants still on the drawing board, the sources said.

Airbus said last year it was considering a larger A350 model, dubbed the A350-2000, to compete more directly with the 777X, though it has played down reports of an imminent project.

It first floated the idea during an earlier SIA contest 10 years ago, at a time when Boeing was considering its own 777X expansion.

Boeing agreed to revisit studies for a larger plane after Emirates ordered more 777X last November, but is said to be cautious given limited demand for a new jumbo and its focus on industrial recovery.

-Reporting by Tim Hepher and Julie Zhu. Editing by Barbara Lewis and Mark Potter/Reuters