Goh says the 787’s greater fuel efficiency will enable Scoot to better compete with other medium-haul, low-cost carriers. AirAsia X, for example, operates A330-300s and has Airbus A350-900s on order. Goh says, “The 787 with the kind of capacity and configuration that it has, we decided it was best suited to Scoot. The A350 has greater capacity, so it’s better suited to SIA mainline with its [premium] positioning in terms of product.”
The airline in its latest Airbus deal, also exercised options for five more Airbus A380s and persuaded Airbus to buy back its five Airbus A340-500s. Because the A340-500 sale is part of a bigger deal for A380s and A350s, SIA may have received a good price from Airbus for the unwanted A340s. If that is the case, SIA will have avoided a big write-down on its books like what happened in the first half of this fiscal year. SIA says its operating profit increased in the first half by S$8 million ($6.5 million), but its net profit still fell 30% to S$168 million, partly because it took a S$67 million loss on disposal of aircraft. The disposals included Boeing 747-400 passenger aircraft, which have fallen in value because of high fuel prices.
Corrections and changes:
Comment from SIA spokesman added in third paragraph.
Fifth paragraph changed to note that the Virgin Australia equity purchase has received regulatory approval.
Eighth paragraph changed. The story originally stated that Scoot is not adding more aircraft next year, but Goh was only referring to new-build aircraft.