NICHOLAS IONIDES / SINGAPORE
China Airlines, Emirates and Gulf Air take bulk of aircraft acquired in a controversial deal
Boeing has finally managed to place all 17 of the Airbus A340-300s that it acquired from Singapore Airlines (SIA) through a controversial 1999 trade-in deal.
Industry sources say eight of the remaining aircraft will be going to Emirates, three more to Gulf Air, and one to Taiwan's China Airlines (CAL). Gulf Air already leases two ex-SIA A340-300s from Boeing, while Cathay Pacific Airways operates three, which Boeing sold with leases attached to other parties. Two of the new placements are aircraft that Boeing had previously leased to the now defunct Khalifa Airways.
Boeing agreed in 1999 to buy all of SIA's A340-300s - including two not built - in a deal related to the purchase of 10 777-200ERs. Boeing had until now found it difficultto place the aircraft.
Emirates confirmed last week that it was finalising a deal with Boeing to lease eight of the A340-300s for nine years. The aircraft are expected to start arriving after refurbishment work around the end of February.
Sources previously said Emirates was in talks to lease six of the ex-SIA aircraft, and they were only expected to have been on short-term arrangements to meet capacity needs until the carrier's first Boeing 777-300ER arrives in March 2005.
But the Dubai-based airline has opted for long-term leases and the nine-year deal covers eight aircraft, all of which will undergo major interior upgrade work. The aircraft will seat 213 in economy class, 42 in business class and 12 in first class.
"We are going to make a major investment to refurbish these aircraft to bring them up to Emirates' standard," it says. "This is part of our ongoing development."
Gulf Air, which declines to comment on the deal, is taking three more A340s from Boeing, including one of the new-build aircraft.
CAL is believed to be taking the other new A340, but the airline will not confirm the deal with Boeing, although it previously said it planned to lease one of the type by year-end. It already operates six A340-300s purchased from Airbus.
Source: Flight International
