Air Freight News

Boeing’s largest 747 customer to take last four of iconic jumbo

Boeing Co. won an order from Atlas Air Worldwide Holdings Inc., the world’s largest 747 operator, for the final four humpbacked freighters that will roll out of the planemaker’s Seattle-area factory.

In a second boost for Boeing, DHL Express is ordering eight of the company’s 777 freighters and taking options for another four jets, expanding a 2018 deal as the coronavirus pandemic spurs demand for air-cargo shipments. The freighter sales are a rare bright spot for wide-body jets, the sales of which have been especially hard hit by the pandemic.

The deals unveiled Tuesday resolve some of the uncertainty around two of Boeing’s twin-aisle programs as the company grapples with manufacturing issues for a third: the 787 Dreamliner. As Boeing winds down 747 output after more than half a century, it has been relying on freighter versions of the 777 to tide over production as a new passenger model of the plane runs at least two years behind schedule.

Atlas plans to take the four 747-8 freighters from May through October 2022. The deal ends the risk that the Chicago-based manufacturer would be left to market so-called white tail-aircraft—jets without buyers. Boeing’s backlog had shown that sales of three of the planes were at risk after a trade dispute with Russia’s Volga-Dnepr Group led to litigation.

E-Commerce Rising

Boeing’s 747-8 freighter has a current market value of $180.2 million wile the 777 freighter is worth $166.1 million, according to Avitas Inc., an aircraft appraiser.

Although demand for air-cargo haulers soared as the coronavirus pandemic spread last year, Boeing had already decided to end 747 production after sales sputtered and a key supplier, Triumph Group Inc., exited a pact to build panels for the jet’s fuselage.

Atlas said its order would boost its ability to serve the surging market for e-commerce packages. The cargo carrier, which already operates a 53-jet fleet of 747s, will ensure that the plane nicknamed the “Queen of the Skies” continues to play “a significant role in the global air cargo market for decades to come,” Stan Deal, head of Boeing’s jetliner unit, said in a statement.

Deutsche Post AG’s DHL also cited the surge in online shopping for its purchase of more 777 jets.

“With the order of eight new wide-body freighter aircraft, we underline our conviction that e-commerce is an enduring mega trend,” John Pearson, chief executive officer of DHL Express, said in a statement. “This is why we decided to act early and kick off 2021 with this investment in our future.”

Bloomberg
Bloomberg

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© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

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