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    Boeing’s Strategic Procurement: Ensuring The Acquisition Of 17 Airbus Aircraft In A Momentous Agreement With Singapore Airlines

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    Boeing 777-200ER Malaysia AL (MAS) 9M-MRO – MSN 28420 404 (9272090094)” by Laurent ERRERA is licensed under CC BY-SA 2.0

    Recall the instance when Boeing acquired 17 Airbus A340 jets? Indeed, this event occurred! Happening two decades ago, this intriguing moment in aviation history might not be widely known, but it made quite a splash upon its revelation.

    A sequence of bold maneuvers by Boeing left Airbus incensed, while Singapore Airlines (SIA) reaped the rewards of acquiring new aircraft. Let’s revisit this tale and explore how it all transpired.

    244ag – Malaysia Airlines Boeing 777-200ER; 9M-MRD@ZRH;06.07.2003” by Aero Icarus is licensed under CC BY-SA 2.0

    The Boeing 777-200ER initially designated the 777-200IGW (for ‘increased gross weight’), took off in the mid-90s.

    Thai Airways Boeing 777-200ER (HS-TJF) Suvarnabhumi Airport, Bangkok” by David McKelvey is licensed under CC BY 2.0

    Seeking to establish the program and bolster sales, Boeing recognized significant opportunities in partnering with the continually expanding Singapore Airlines, which had bypassed the initial 777 family.

    Malaysia Airlines Boeing 777-200ER; 9M-MRD@HKG;05.08.2012/671fd” by Aero Icarus is licensed under CC BY-SA 2.0

    Already a significant Boeing user through the 747 program, the American aircraft manufacturer envisioned a crucial role for the 777-200ERs within the airline’s fleet.

    The announcement came on the final day of the Paris Air Show in June 1999, surprising the aviation world. Initially part of a secret agreement made in 1995, the reveal was timed with Singapore Airlines’ decision to swap 10 Boeing 777-200ERs for the Airbus A340-300s, marking a bold move by Boeing to buy out its competitor’s aircraft from one of their shared customers.

    Lufthansa A340-300” by caribb is licensed under CC BY-NC-ND 2.0

    Senior Vice President and Commercial Director of Airbus at the time, John Leahy, expressed his dismay at the deal, stating, “This is an act of desperation… We’re preparing our counterattack at the present time…I don’t want to predict what our response will be.”

    United 777-200 N768UA” by caribb is licensed under CC BY-NC-ND 2.0

    Despite Leahy’s assertive comments, the deal symbolized Boeing’s commitment to expanding its presence in the Singaporean carrier’s fleet, particularly with the 777-200IGW model, which became the airline’s dominant long-haul aircraft.

    Kuwait Airways A340-300 Heathrow” by Bill Wilt is licensed under CC BY-ND 2.0

    The repercussions for Airbus were immediate. In retaliation, they launched an advertising campaign asserting that their four-engine A340s were superior for long-haul flights compared to Boeing’s two-engine alternatives. One prominent display at the Farnborough Air Show in 2002 proclaimed, “A340 — 4 engines 4 long haul.” However, their message did not sit well with some in the industry, including engine manufacturers.

    German Air Force Airbus A340-300 16+01” by BriYYZ is licensed under CC BY-SA 2.0

    David Calhoun, then president and chief executive of General Electric’s GE Aircraft Engines and now Boeing’s CEO, vocalized his opposition, “We are vehemently opposed to what Airbus is doing here… An ad like that is the last thing this industry needs right now.”

    Aeroflot Russian Airlines Boeing 777-300ER VP-BGD at Suvarnabhumi International Airport, Bangkok, Thailand” by UweBKK (α 77 on ) is licensed under CC BY-NC-SA 2.0

    The transaction also proved economically beneficial for Singapore Airlines, as it enabled the airline to refresh its fleet with newer 777s while minimizing the financial impact of retiring the A340s early.

    Air France 777-300ER” by caribb is licensed under CC BY-NC-ND 2.0

    Boeing’s foresight appeared to be validated as SIA eventually operated a significant number of 777-300ERs, solidifying the model’s place in the airline’s long-haul operations.

    PIA – Pakistan International Airlines Boeing 777-300ER; AP-BHV@LHR;13.05.2013/708eh” by Aero Icarus is licensed under CC BY-SA 2.0

    The fate of the acquired A340s was varied and fascinating. Boeing’s intention was never to keep them but rather to find new operators.

    Thai Airways Boeing 777-200ER (HS-TJF) Suvarnabhumi Airport, Bangkok” by David McKelvey is licensed under CC BY 2.0

    These planes eventually made their way to different airlines around the world, such as Gulf Air, Mahan Air, China Airlines, and even the Qatar Amiri Flight.

    Thai Airways Boeing 777-200ER (HS-TJF), Suvarnabhumi Airport, Bangkok” by David McKelvey is licensed under CC BY 2.0

    Some also served with wet lease operator Hi Fly, supporting different airlines and even the Royal Australian Air Force as troop transports. Others were absorbed into private fleets, like that of the Las Vegas Sands, used to transport high-rollers.

    Relevant articles:
    Why Boeing Bought 17 Airbus A340s From Singapore Airlines, Simple Flying
    What Happened To The Airbus A340s Boeing Bought From Singapore Airlines?, Simple Flying
    Boeing Wins Key Order by Agreeing to Buy 17 Airbus Jets, Los Angeles Times

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