SIA ANNOUNCES B747-400 FREIGHTER ORDER AND STRENGTHENS ITS COMMITMENT TO THE AIR CARGO BUSINESS

Singapore Airlines (SIA) today announced a firm order for six B747-400 freighter aircraft from the Boeing Company. The order, including spares and spare engines, is worth US$1.3 billion. With this order, SIA will have a total of eight freighter aircraft on firm order – to be delivered over the next five years.

Today’s order also includes nine options, for either passenger or freighter aircraft, which were transferred from a previous order in November 1994.

The B747-400 freighters, which SIA dubs the Mega Ark, will be powered by Pratt & Whitney’s PW4000 series engines. They are scheduled to be delivered between 2002 and 2005.

Mr Michael Tan, SIA’s Executive Vice-President Commercial, said: “The expansion of the Mega Ark fleet augurs well for the future of SIA Cargo as it embarks on its corporatisation plan next year. The additional freighters, which represent a capacity increase of about 10 per cent annually, will help SIA Cargo cater to market development and growth. It will also further strengthen Singapore’s position as a major international cargo hub in the Asia-Pacific region.”

Mr Hwang Teng Aun, SIA’s Senior Vice-President Cargo, noted: “This aircraft order, together with other significant investments such as SATS Airfreight Terminal 6, reaffirms our commitment to be a major player in the global air cargo business.”

SIA currently operates nine Mega Ark freighters. The Mega Ark has a maximum cargo payload of 123 tonnes, or a cargo volume of 24,735 cubic feet (700 cubic metres). It is able to fly 7,400 kilometres with a full payload, including 30 cargo pallets on the main-deck.

SIA Cargo serves 73 cities in 38 countries. In financial year 1999/2000, SIA carried over 900,000 tonnes of freight (or 5.7 billion in terms of freight tonne-kilometres – FTKs). SIA Cargo’s revenue for the 1999/2000 financial year was S$1.9 billion, up 18.9 per cent on the previous year. According to the latest IATA Air Transport Statistics (1999), SIA was ranked the world’s third-largest cargo carrier in terms of international FTKs.