Avion Group of Iceland is buying four 777 jet freighters and is in talks to have the Boeing Co. convert some of its 747s into cargo planes.
It’s the second order for Boeing’s 777 freighter, the cargo version of the 777-200LR passenger jet. Boeing launched the program in May with a five-plane order from Air France.
The deal is worth about $1 billion at Boeing’s list prices, although analysts say airlines have been negotiating discounts of about 25 percent.
Avion is the parent of jet-leasing company Air Atlanta Icelandic, which will operate the planes. Air Atlanta Icelandic will take delivery starting in February 2009, and the company said the 777 freighters will “provide a good complement to the 747 freighters that many of our customers already operate.”
Boeing said the plane will be the farthest-flying freighter, with a range of 5,700 miles. It also will have a greater cargo capacity than any other twin-engine freighter, at 114.5 tons.
Avion also wants to add to its portfolio of 747 cargo jets. The company and Boeing said they are in “serious negotiations” over terms of converting three of Air Atlanta Icelandic’s 747-400 passenger jets into freighters.
The company already owns a fleet of 26 passenger jets, 18 cargo jets and four “quick-change” Boeing 737s that can be converted to carry either.
The order comes as Boeing prepares to close its third-quarter books. It’s been a strong sales year for the company, which this week reported a net of 605 orders for the year to date. That’s up from 196 orders in the first nine months of 2004.
Boeing has taken firm orders for 33 777s this year, compared with 11 in the comparable period of 2004.
Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.
Boeing strike
Today is the 22nd day of the International Association of Machinists’ strike against the Boeing Co. No new talks are scheduled, a company spokesman said.
Boeing strike
Today is the 22nd day of the International Association of Machinists’ strike against the Boeing Co. No new talks are scheduled, a company spokesman said.
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