Singapore Airlines to finalize $13.8bn Boeing order next week

Singapore Airlines is the launch customer for the 787-10, a stretch version of the Dreamliner. (Reuters)
Updated 20 October 2017
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Singapore Airlines to finalize $13.8bn Boeing order next week

SINGAPORE: Singapore Airlines said on Friday it will finalize an order for 39 Boeing aircraft worth $13.8 billion at list prices when Singaporean Prime Minister Lee Hsien Loong visits Washington DC next week.
The airline said in February it would order 20 777-9 and 19 787-10 widebodies as part of plans to modernize its fleet over the next decade, but the deal is yet to be finalized and placed in Boeing’s order book as a Singapore Airlines order.
The deal was viewed as a major blow to Airbus as it battles against Boeing in the widebody market. Airbus has lagged Boeing in net orders in the first nine months of the year, with 271 at the end of September versus 498 for its US rival.
Lee told CNBC television on Thursday that he hoped an agreement would be signed with Boeing to buy more aircraft for Singapore Airlines during his US visit from Oct. 22 to 26.
More details about the order would be revealed after the signing ceremony in Washington, a Singapore Airlines spokesman said.
The airline in February said it had also acquired options to order six more aircraft of each type.
Boeing in June booked orders for 20 777Xs and 19 787-10 aircraft for an unidentified customer or customers, making it possible the Singapore Airlines aircraft are already counted in this year’s net orders. Boeing declined to comment.
Singapore Airlines is investing in modern, fuel efficient aircraft while at the same time undertaking a strategic review designed to help cut costs amid growing competition from Chinese and Middle Eastern rivals.
While the Boeing order is worth $13.8 billion at list prices, airlines typically get discounts on jet orders. Jefferies in February estimated the deal’s value at closer to $6.5 billion, or about a tenth of the US plane maker’s annual volume.
Singapore Airlines is the launch customer for the 787-10, a stretch version of the Dreamliner, having made 30 firm orders in addition to the 19 announced in February. Boeing completed final assembly of the airline’s first 787-10 earlier this month ahead of delivery in the first half of 2018.


JC Decaux pursues $810 million bid for Australia billboard firm APN

Updated 10 min 23 sec ago
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JC Decaux pursues $810 million bid for Australia billboard firm APN

PARIS: French outdoor advertising company JC Decaux said it was still in talks with Australian billboard firm APN Outdoor Group over its offer to buy APN, currently worth around $810 million.
The statement from JC Decaux came after APN itself lost out in a bid for advertising firm Adshel, part of a series of deals in the lucrative Australian outdoor advertising market. The French group is one of four companies controlling an industry estimated to be worth some $660 million in Australia.
JC Decaux’s offer had in fact been conditional upon APN scrapping its $424 bid for HT&E’s Adshel outdoor advertising division Adshel. A deal for APN to buy Adshel would have increased the competitive pressure on JC Decaux’s local business.
JC Decaux, which sells ads on bus stops and billboards, has offered A$6.52 per APN share, valuing APN at around A$1.09 billion ($808.8 million).
“Until a transaction is agreed between the parties, there is no certainty that the proposal will result in any transaction. JC Decaux will continue to update the market in relation to the proposal,” JC Decaux said in a statement.
Last week, APN had called JC Decaux’s offer “modest” and had decided against backing down on its proposal to buy Adshel. In the event, APN was beaten out by rival Ooh!Media Ltd. in the fight to buy Adshel.
JC Decaux shares were up 0.5 percent on Monday, while shares in APN had been temporarily suspended.
APN and Ooh!Media rank first and second in the billboards and outdoor advertising market in Australia, according to research firm IBISWorld. JC Decaux ranks as the third-biggest in Australia, while HT&E ranks fourth.
The mergers and acquisitions activity within the Australian outdoor advertising sector has drawn close scrutiny from regulators, which had last year blocked a merger between APN and Ooh!Media.