UPS Gives Boeing Jumbo a Boost
27 Octobre 2016 - 7:30PM
Dow Jones News
United Parcel Service Inc. on Thursday said it was buying 14
Boeing Co. jumbo freighters, doubling the plane maker's order book
for the jet even as it slows production.
The order and options to acquire 14 more are a huge boost for
the 747-8 program as both the passenger and freighter versions have
been slow sellers. Airlines have opted for smaller planes and the
moribund air cargo market has led others to cancel planned
purchases.
Boeing has halved production to six planes a year and warned in
regulatory filings that it may stop making them unless market
conditions improve.
UPS said it would take the first planes in 2017, with deliveries
running through 2020.
The 14 jets have a list price of $5.3 billion, but UPS is
expected to have secured steep discounts from Boeing and may be
able to unload some of its older 747 cargo jets to Boeing as part
of the deal, said one aircraft financier familiar with the
negotiations.
Boeing and UPS declined to comment on the financial terms of the
deal.
The plane maker has just 15 firm orders for the 747-8, including
six for the freighter version after securing a deal for four this
year from AirBridgeCargo Airlines LLC.
Boeing has been renting rather than selling some of the new
planes and has more than $1 billion in exposure to 747 leases on
its balance sheet, according to a regulatory filing.
It has produced some 747-8s that still lack a customer, but
Boeing said the UPS planes would all be newly built.
Boeing Chief Executive Dennis Muilenburg said on the company's
quarterly earnings call this week that 747 production was
sustainable at six a year. The U.S. Air Force is due to acquire two
of the planes for use as the future Air Force One fleet.
The biggest operators of the 747-8 cargo jet are Cargolux
Airlines International SA and Cathay Pacific Airways Ltd., with 14
apiece.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
October 27, 2016 13:15 ET (17:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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