BUSINESS JOURNAL PHOTO | Anthony Bolante
The front-opening nose hatch of Boeing 747-8 freighters likely was a key reason why… more
Big is back.
Boeing (NYSE: BA) has landed its largest order for the four-engine 747 jet in a quarter century, a 20-jet order from Volga-Dnepr Group, a Russian cargo carrier.
The intent to order, announced at the Paris Air Show, is for 747-8F freighters, and probably is worth about $3.8 billion or less, based on the $190 million blue book price for the aircraft.
Boeing
Boeing is to build 20 of… more
The actual price could be even less than the $190 million blue book, given Boeing’s urgent efforts to keep the 747 line operating, said Doug Kelly, senior vice president aircraft evaluation for aerospace analyst Avitas Inc., in Washington D.C.
“It wouldn’t surprise me to be lot less than that, if it’s a strategic order from a big customer,” he said. “Obviously it’s been a weak market. Boeing is desperate to make some sales.”
Boeing’s list price for the 747-8F aircraft is $368 million, and the list price value of the order would be $7.4 billion.
The pressure to score a big 747 sale has been huge because Boeing’s list of unfilled orders – not including this new order – was down to 32 planes Wednesday, 14 of which were freighters.
Boeing Commercial Airplanes CEO Ray Conner even said during a recent conference that the production rate could be trimmed down to one monthly and still be profitable for Boeing.
At the current rate of 1.3 jets monthly, the Volga-Dnepr order is good for about 15 months of work on the Boeing line in Everett. The deal currently is a “memorandum of understanding,” with a firm order still to be finalized. The order is to include a mixture of purchased and leased aircraft, the latter from an external lessor.
The 747-8F, with a nose hatch to load cargo from the front, is an ideal aircraft for Volga-Dnepr, which specializes in out-sized cargoes, Kelly said.
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