Friday, June 7, 2013

Today's Big Boeing 787 News Is Singapore Airlines (SIA), Engines From Rolls

SIA have selected its 787 Engines from Rolls Royce. A Victory for the engine builder from England. Its a real good selection, performing 99.9 percent of the time at an optimal level. The SIA aircraft and engine selection tells me that this 787 Aircraft order has been in the works for a very, very long time. Once Boeing had the battery problem was well in-hand, and thrown into the glitch trash bin after several months. The A350 order announced simultaneously with the 787-10 order demonstrates SIA is concerned with a guarantee of delivery on time. The A350 is well on its way for first flight, and if SIA wanted to bundle its order with all Boeing, it decided to hedge the unknowns with a split order. They are a reliability conscientious and a scheduled airline for its  business model. SIA is battling mass airline transportation opportunist in the Southeast asian region, and its existing networks throughout the world. Think of Lion Air's recent gigantic orders. It is critical for SIA that they receive a timely reliable product, to counter these aircraft infusions in the area. They are at the crossroads  in the asian markets and will take a controlled aim for its inventory

Insight into SIA's Strategy Article

"Its unit, SilkAir, has an order for 54 Boeing 737s and is awaiting delivery of one Airbus A320. Scoot, the long-haul budget airline, has an additional 20 787-900s on order.
"We don't compete by having the most aircraft on order with manufacturers," SIA spokesman Nicholas Ionides said. "We compete by providing the highest quality products and services over an extensive network."
That sums up SIA's strategy perfectly and rolls back to the Rolls Royce decision perfectly. Timely and reliable orders are on the plan. It is not to say that the GE engine for 787 is in anyway inferior, but more of what expertise and trained knowledge does SIA have for the RR engine maker.  Four Billion for the Rolls package on the 787-10 is probably a great deal in the bigger picture plan for SIA.  They can't afford the time or money to retrain service personnel for a completely different engine maker.  SIA has 70, A350-900 on order. Those replacement aircraft for its older inventory will have  an army of maintenance people servicing those aircraft.  Now it makes sense of how SIA will expedite orders towards it infrastructure of service resources.  The 787-10 with Rolls engines fits in SIA's strategy,  "We compete by providing the highest quality products and services over an extensive network." It fits best   for how SIA is currently situated.  That is why the 787-10 goes to Scoot, who is going head to head with Lion Air and others in the region. 
Boeing was smart to have two engine makers for its 787 family of aircraft, that is why SIA could choose the RR for its newly requested 787-10, Otherwise it would have been another Airbus order.  Boeing got its foot back in door with  having these two fine engine makers for customers to choose. This value for customers makes Boeing smile.
Rolls Royce Trent 1000