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The Week Of:
February21,2000

AA 2000: Orders Begin at Asian Aerospace 2000

By Edward James/Singapore

SINGAPORE (February 22, 2000) - The orders have started to flow at Asian Aerospace 2000 with regional jets once again to the forefront.

Continental Express started the ball rolling with an order for 100 aircraft, split between 75 ERJ 145s and 25 ERJ 135s.

The order takes to 200 the commitments for the ERJ family from Continental Express, made up of 150 ERJ 145 and 50 ERJ 135.

Embraer sales for the ERJ 145 stand at 402 with 271 options, while the ERJ-135 has garnered 165 with 157 options.

"This order moves us closer to reaching our goal of transitioning to an all-jet fleet," said Jim Ream, Continental Express chairman.

As previously announced, Continental Express has retired certain of its turboprop aircraft, including some of its fleet of ATR-72s, ATR-42s and EMB-120s.

From the region, Hong Kong-based Dragonair will order on Wednesday eight Airbus A321s and two A330s, say insiders. The airline will also take options on 10 more A320 family aircraft.

At the same time, Singapore Airlines has issued its much talked about request for its "W" aircraft to replace its 17 Airbus A310s. The initial requirement is for seven 250-seat aircraft with 10 options with delivery set for early 2003.

Airbus is proposing the A330-100, a shortened version of the A330-200, while Boeing is tackling the problem with a similar solution with the 777, which is already in the SIA fleet.

The airline is also looking at a mix of 180/200-seaters to fit the requirement and has asked Airbus to price 12 A321s and Boeing the 737-900.

Further north, however, Malaysia Airlines has poured cold water on reports that it is to order 80 aircraft from Airbus.

The reported buy was for A340-500/600s and the A320 family (see related story).

The airline had a board meeting last Friday, and the issue of new aircraft was not even discussed, say insiders at the airline.

MAS executive vice president Dato Bashir Ahmad said that the airline was still considering proposals from Boeing and Airbus. The Airbus proposal was actually received more than eight months ago.

The MAS fleet of 737s is one of the youngest in the region, while the 777 has been the backbone of the massive advertising campaign that has seen the airline lift its marketshare on some routes by 35%.

"It's hard to believe the airline will dump the 777 for the A340 when Singapore Airlines, its archrival has done the opposite" said one airline analyst.

MAS is considered a prime launch customer for the Boeing 777-200LR.



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