Singapore Airlines could boost its bottom line by an estimated US$500 million in its current financial year through a major sale of aircraft. Discussions are underway with Pakistan International Airlines over eight Boeing 747-300s, which SIA wants to retire from its fleet of 69 aircraft.
It is the second time the two carriers have discussed the potential deal. Earlier negotiations were abandoned in October 1995 because the Pakistani government complained that SIA's asking price was too high.
The Singapore flag carrier argued it was only asking a fair market price and stressed its aircraft were among the best maintained in the industry. In late January the renewed discussions, which are thought to be brokered by ST Aerospace, a member of Singapore Technologies Group, were still at a preliminary stage.
The proposed sale comes in the wake of SIA's large order for Boeing 777s and is central to the Singapore carrier's strategy of maintaining a young fleet.
SIA has used aircraft sales to boost its bottom line previously; in the financial year to March 1995 the sale of jets and other assets lifted earnings by more than S$200 million ($141 million).
* Cathay Pacific has outbid US-based Atlas Air for three Boeing 747-200 Combis, currently owned by Varig. The aircraft will be converted to freighters and leased to Air Hong Kong, the all-cargo carrier in which Cathay has a 75 per cent stake. Reports suggest that Cathay paid $150 million for the three aircraft including the price of the cargo conversion.
Tom Ballantyne
Source: Airline Business
