EVERETT — Boeing and Azerbaijan-based Silk Way West Airlines are working out terms for three 747-8 freighters.
The Silk Way West deal would be worth $1.1 billion at current list prices, but airplanes are usually sold at large discounts, especially when a company is struggling to attract buyers.
The 747 program has struggled to bring in new orders in recent years. Boeing landed two freighter orders in 2014, but it also had two orders cancelled, leaving the airplane maker with no net orders for the 747.
That is not a first. Boeing has even posted negative net orders for 747s at least twice — in 2010 and 2011.
But the company has never experienced such weak demand for its iconic jumbo jet for so extended a period. Three of the four years in which Boeing only received two or fewer new 747 orders have been since 2008.
Since the jet’s introduction in 1966, Boeing has received a median of 23 new orders a year. Since 2008, the median has been five new orders a year.
Boeing plans to cut the 747 production rate from 1.5 a month to 1.3 a month in September 2015.
Demand has been similarly weak for the behemoth Airbus A380, the double-decker jetliner offered by Boeing’s rival. There has been much speculation among industry insiders about the super-jumbo’s future.
Airbus scrapped a freighter version of the A380 while it was still on the drawing board, due to lack of demand.
On the flip side, the 747-8 freighter has far outsold the passenger version, the 747-8 Intercontinental. The freighter has 16 percent more cargo space than its predecessor, the 747-400, according to Boeing.
Nonetheless, demand for freighters have been lackluster in recent years. The air cargo market was hit hard by the 2008 economic recession and has been slow to recover.
Silk Way West is part of the Silk Way Group, which includes 23 companies working in the aviation industry and related services. The airline currently operates seven Boeing airplanes: two 767-300 freighters, three 747-400 freighters and two 747-8 freighters.
Earlier this week, Boeing finalized a deal with Qatar Airways for four 777 freighters worth $1.24 billion at list prices. The airline has purchase rights for another four airplanes.
Qatar Airways’ CEO Akbar Al Baker is not one to shy away from bold statements.
“We aim to make Qatar Airways one of the world’s major air cargo players,” he said. “With its proven track record, long-range capabilities and excellent operational efficiencies, the 777 freighter will be a key player in enabling Qatar Airways to grow its footprint and economically deliver cargo further, connecting many long-haul destinations from our hub in Doha, especially with the expansion of Doha’s new freight terminal.”
The airline already operates seven 777 freighters and 37 777 passenger versions (777-300ERs and 777-200LRs). It also recently took delivery of the first Airbus A350.
The 777 freighter has the longest range of any twin-engine cargo plane, according to Boeing. It can fly 4,900 nautical miles with a full payload and general cargo market densities.
That means fewer stops, fewer landing fees, less congestion at transfer hubs, lower cargo handling costs and shorter cargo delivery time, according to a news release from the company.
Boeing also recently delivered a 787 to Royal Air Maroc, making it the first carrier in the Mediterranean region to use the Dreamliner, according to the airplane maker.
Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.
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