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The absence of an order for the B7E7 from Singapore Airlines (SIA), for now at least, makes it necessary to reconsider whether the new Boeing [BA] product will have a profound effect on medium- size widebody residual values, as some in the industry have suggested. SIA was expected to announce a major order for the B7E7. But the delay -- and the carrier's consideration of an Airbus alternative -- suggests that the indicative economics of the all- new Boeing product are not sufficiently compelling for the competition to be dismissed out of hand. With the possibility of Airbus also offering the A330-200 Lite to other potential B7E7 customers, there may yet be an alternative to the Boeing product. However, SIA's delay in making a decision may also be a ploy to extract further concessions from Boeing.
SIA's delay on the B7E7 is reportedly a consequence of allowing Airbus to refine an...