Silk Air places big Boeing order

[Foxtrot]

The airline signed a Letter of Intent for 54 737-800s/MAXs.

Source: ATW Online

[Peter Kesternich]

Interesting move... I would have thought Silkair would have gone with the A320NEO.

[TAP-A343]

I would say that Boeing must have offered a very good price to compensate Silk Air for all the costs involved in changing from an all-A32S fleet to an all-B737 one. Otherwise, I don't see the point of this LOI.

[canair67]

Originally Posted by TAP-A343

I would say that Boeing must have offered a very good price to compensate Silk Air for all the costs involved in changing from an all-A32S fleet to an all-B737 one. Otherwise, I don't see the point of this LOI.

I DO..........SilkAir CEO Marvin Tan said the selection was made following “detailed evaluations and extensive negotiations with both Airbus and Boeing. The order will enable us to maintain a young and modern fleet with an aircraft that has a proven track record of strong customer appeal, excellent reliability and low operating costs.”
Price wasn't the first factor. You can bet on that by these statements. A better aircraft was selected for what they require.

[AA 1818]

Originally Posted by canair67

I DO..........SilkAir CEO Marvin Tan said the selection was made following “detailed evaluations and extensive negotiations with both Airbus and Boeing. The order will enable us to maintain a young and modern fleet with an aircraft that has a proven track record of strong customer appeal, excellent reliability and low operating costs.”
Price wasn't the first factor. You can bet on that by these statements. A better aircraft was selected for what they require.

Or, perhaps airlines are wising up, and playing both manufacturers against each other for their own gain. Silk Air understands well that they are going to have to grow massively to keep other competitors at bay. Relying solely on Airbus is foolish, especially when Airbus' production lines also provide aircraft to your competitors. They need more aircraft, and they need them fast. They also might want to hold onto some semblance of fleet commonality. So, you play Airbus, and you order Boeing. Even if, in the unlikely event that you pay more for the 737s than you do for the A32Xs (which is very unlikely given this market), it's worth it, because you can expand while competitors don't have the planes to expand.

The airline wins three times; They rattle Airbus' cages, by showing them that they are not solely dependent on Airbus. They get a great deal from Boeing. They get the aircraft to expand, quickly.

It's not an A vs B war, it's just smart planning.

[AA 1818]

Originally Posted by canair67

I DO..........SilkAir CEO Marvin Tan said the selection was made following “detailed evaluations and extensive negotiations with both Airbus and Boeing. The order will enable us to maintain a young and modern fleet with an aircraft that has a proven track record of strong customer appeal, excellent reliability and low operating costs.”

BTW, if you did not know who got the order, and you re-read his quote - you would still not know who won the order. There's no preference there.