Singapore Airlines in $7.5 bln Airbus deal

SINGAPORE Wed Oct 24, 2012 5:32am EDT

SINGAPORE Oct 24 (Reuters) - Singapore Airlines said on Wednesday it will order five more Airbus A380 aircraft and 20 A350 planes in a deal valued at $7.5 billion.

As part of the agreement, Airbus will buy back SIA's five A340-500s, which will be removed from service in the fourth quarter of 2013.

The withdrawal of the A340-500s will result in the end of non-stop flights between Singapore and Los Angeles and between Singapore and Newark, SIA said in a statement.

Deliveries of the new Airbus planes, which have a list price of $7.5 billion, are due to begin in 2017.

"This major order will provide us with additional growth opportunities and is consistent with our longstanding policy of maintaining a young and modern fleet," SIA's chief executive, Goh Choon Phong, said in the statement.

In a separate statement, Scoot, SIA's long-haul low-cost unit, said it agreed to acquire 20 Boeing 787 aircraft for delivery starting in 2014. The 787s were originally ordered by SIA, Scoot said.

The B787 aircraft will replace Scoot's Boeing 777-200 fleet and help its ongoing expansion, the low-cost carrier said.

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