Friday, October 28, 2016

Freight and Logistics Giant Orders Fourteen New Heavy Cargo Aircraft

New 747-8s Deal Boost Flagging Sales of Near 50 Year Old Model
Shipping News Feature
US – Following on from our recent article citing aircraft manufacturer Boeing’s prediction of an expansion in the international air freight market and the concomitant increase in production of cargo carrying aircraft, comes the news that logistics leader UPS has announced that they are ordering fourteen new 747-8 freighters from the Seattle aerospace company. The 747-8 Freighter has 16% more revenue cargo volume than the previous 747-400F model combined with an airport noise footprint around 30% less than its predecessor. Brad McMullen, vice president, Sales, North America and Leasing, Boeing Commercial Airplanes said:

"UPS could not have selected a better aircraft to meet its growing business needs. We’ve continued to make the 747-8 Freighter even better, and we look forward to seeing UPS introduce it to its fleet."

The new deal will cost UPS around $5.3 billion in total assuming it pays book price, something which seems unlikely given recent history, and the deal will possibly squash all talk of cancelling the aircraft type which has been circulating as orders have fallen of late. The 747 has been around for 47 years and Boeing recently reduced production to just 6 per year. There are currently 109, 747-8 passenger and freighter airplanes in service around the globe and Boeing claims that the aircraft is ‘the world’s most efficient freighter, providing cargo operators the lowest operating costs and best economics of any large freighter on the market.’