SilkAir bulks up for battles ahead
Silk Air has jumped ship – or rather plane – by placing the biggest order in its history with a tentative deal to buy more than 50 Boeing 737 jets worth $5 billion.
Until now, Silk Air has been a committed Airbus customer.
Aviation experts indicate the B737 deal will enable SilkAir to expand across the region as it gears up for tougher competition with rivals like Garuda and Lion Air of Indonesia.
“Strengthening SilkAir will enable the carrier to become a bigger regional player and allow parent firm SIA – which is also facing fiercer rivalry – to focus on long-haul routes,” Shukor Yusof, an aviation analyst at the credit ratings agency Standard & Poor’s in Singapore, told AFP.
Boeing and Airbus are locked in a fierce contest for customers, slashing prices to take maximum advantage of the chance to lock in customers for the new A320neo and Boeing’s response, the 737 MAX.
SilkAir will have a new CEO from September 3, when Leslie Thng takes over from Marvin Tan, who will be returning to parent company Singapore Airlines.
Thng, 37, is currently SIA’s vice president network planning.
Ian Jarrett
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