Boeing considers a new 747 niche

  • Tuesday, November 16, 2004 9:00pm
  • Business

It’s a big week for the Boeing Co., which is conducting two meetings with airline customers this week about jets that could define the future of the company in Everett for the next couple of decades.

On Monday and Tuesday, Boeing met with air cargo carriers in Seattle. That prompted Monday’s announcement of the 777 freighter. What better forum to proclaim your intention to offer a cargo jet than in front of a bunch of cargo jet operators?

What Boeing didn’t announce was that it also spent a lot of time talking up the 747 Advanced at the conference.

Boeing executives are closing in on a decision about putting a vastly overhauled jumbo jet on the market. The 747 Advanced would incorporate the engines and cockpit technology being developed for the 7E7, and use the ultralight aluminum alloys that Boeing considered for the Dreamliner but ultimately rejected.

The combination would make for a lighter, more fuel-efficient version of the tried-and-true 747 – one that Boeing could develop and sell for far less than the cost of a new airplane designed and built from scratch. The plane could be available around 2010, Boeing said.

In the spring, Boeing showed off some interiors mock-ups that could use the space above the 747’s main passenger cabin as “Sky Suites” – bunks and lounge areas that would create a second premium seating area for passengers on the 747 Advanced.

But the cargo market will determine whether Boeing goes ahead with the 21st-century jumbo jet. Of the 34 747s Boeing shows on its order backlog, 23 of them – more than two-thirds – are factory-built freighters.

The big advantage of the 747 Advanced would be the 7E7 engines, analysts say. Boeing’s previous attempts to upgrade the 747 fell apart because of the cost of developing new engines. With the 7E7 program paying for that, it’s no longer an issue.

But there’s still a question of whether there’s a big enough market to justify the new plane at all, analysts warn.

Boeing is trying to position the 747 Advanced as an affordable alternative sized halfway between the 777 and the Airbus A380. That’s a narrow niche to start with, and with Airbus willing to cut big deals on the larger A380, it may be hard for Boeing to compete.

The question will be whether Boeing is willing to spend the money to keep the 747 line chugging along at one or two jets a month, the analysts say. If they are, the 747 Advanced could keep the company building jumbo jets in Everett for the next decade or more.

* Boeing also is meeting with potential 7E7 customers this week.

The company has tentatively scheduled a press conference to follow the customer meetings on Thursday, presumably to announce some sort of good news – or to at least to let customers extol the virtues of the Dreamliner.

Boeing could use a big 7E7 order. After confidently saying the company would sell 200 7E7s by the end of the year, executives find themselves less than halfway to that total, with only one big order from a blue-chip airline – the 50-jet launch order from All Nippon Airways.

There are a couple of theories about why sales have been slow: Airbus is talking up an A350 alternative, and Boeing hasn’t completed its contract talks with all its major airframe suppliers. Either could be an influencing factor.

But one game-changing order could be floating out there. Last week, Qatar Airlines said it would be interested in ordering as many as 60 7E7s, but only if Boeing accelerates development of the 7E7-9, the 257-seat stretch version of the plane.

Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

(Image from Pexels.com)
The real estate pros you need to know: Top 3 realtors in Snohomish County

Buying or selling? These experts make the process a breeze!

Relax Mind & Body Massage (Photo provided by Sharon Ingrum)
Celebrating the best businesses of the year in Snohomish County.

Which local businesses made the biggest impact this year? Let’s find out.

Construction contractors add exhaust pipes for Century’s liquid metal walls at Zap Energy on Monday, Feb. 3, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Snohomish County becomes haven for green energy

Its proximity to Boeing makes the county an ideal hub for green companies.

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

Rick Steves speaks at an event for his new book, On the Hippie Trail, on Thursday, Feb. 27 at Third Place Books in Lake Forest, Washington. (Will Geschke / The Herald)
Travel guru won’t slow down

Rick Steves is back to globetrotting and promoting a new book after his cancer fight.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.