Singapore Air Selects Rolls-Royce Engines for Boeing 787-10X

Singapore Airlines Ltd. (SIA) selected Rolls-Royce Holdings Plc (RR/) engines to power the 30 Boeing Co. (BA) 787-10X jets it ordered last week as the first buyer of the new Dreamliner model and for planes at discount subsidiary Scoot.

Southeast Asia’s biggest carrier chose the Trent 1000 engines over a General Electric Corp. engine available for the aircraft, Singapore Air said in a statement today. The order is conditional upon Boeing formally launching the 787-10X.

Singapore Air last week agreed to order 30 Boeing 787-10Xs and 30 more Airbus SAS A350-900s, also powered by the London-based engine maker, as the region’s economic growth spurs travel demand. Chief Executive Officer Goh Choon Phong is adding more planes and has upgraded business-class cabins as he faces increasing competition from Emirates and other airlines expanding in Southeast Asia.

Rolls-Royce will provide Trent 1000s also to power the 20 787s Singapore Air’s Scoot Pte unit will operate from next year, the carrier said.

Singapore Air signed a letter of intent with Rolls-Royce for a service package for both deals. Under the agreement, Rolls-Royce will be responsible for the provision of maintenance, repair and overhaul services for the engines, as well as for spare engine support, the airline said.

Singapore Air shares fell 1.05 percent to S$10.35 in the city today, before the announcement. The stock has dropped 3.7 percent this year.

Last week’s agreement with Boeing comprises 30 firm-ordered 787-10Xs for delivery from the 2018-19 financial year. The deal with Airbus comprises 30 firm-ordered A350-900s, on top of 40 placed previously, for delivery from the 2016-17 financial year, plus options for 20 more. The options may be converted into firm orders for larger A350-1000s on which Rolls-Royce is the exclusive engine provider.

Rolls also provides the engines for Singapore Air’s A380 superjumbos and last year opened a turbine assembly facility in the city-state.

To contact the reporter on this story: Vipin V. Nair in Mumbai at vnair12@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

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