Monday, March 5, 2018

Boeing expects more 777 Freighter orders as air cargo market surges

Boeing expects to secure new orders for 777 Freighters later this year thanks to a surging air cargo market, a senior executive said Monday.

"You're going to see more 777 Freighters (orders) this year as that market continues to improve," Boeing Commercial Airplanes Vice President of Marketing Randy Tinseth said during a conference call with journalists during the annual International Society of Transport Aircraft Trading conference in San Diego, California.

Asked if he meant new 777 cargo jet orders in the single or double digits, Tinseth declined to answer but added: "There's a lot of freighters in the pipeline and I'm confident that a lot of them will come home,"

Boeing makes the 777 Freighter in Everett. The wide-body aircraft has a list price of $339.2 million, and a surge of orders would be good news for the jet maker and its Puget Sound-area supply chain.

Boeing has not yet reported an order for a 777 Freighter in 2018, but has so far only disclosed deals for the month of January. Boeing has 30 undelivered orders for 777 Freighters, all of them powered by GE engines, according to Boeing's website.

The International Air Transport Association said in late January that global air freight markets grew nine percent in 2017, more than double the increase in 2016.

Last month, shipping giant UPS ordered 14 Boeing 747-8F cargo jets and four Boeing 767 freighters, saying it needs the 18 new aircraft to boost its air cargo capacity amid surging global demand.

In January, Boeing disclosed an order for three 777 freighters from Turkish Airlines. Worth $977.1 million at list prices, that order came weeks after the carrier took delivery of two 777 cargo jets.

Tim Myers, president of Boeing Capital Corp., said at the ISTAT conference that aircraft sales have been spurred by alternative financing solutions that emerged because of the inability of the Export–Import Bank of the U.S. to approve new aircraft loans.

More than $1 billion of new airplane deliveries in 2017 were supported by a new Marsh McLennan affiliate called the Aircraft Finance Insurance Consortium.

(Andrew McIntosh - Puget Sound Business Journal)

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