EVERETT — The Boeing Co.’s goal of selling 500 7E7s before the new plane’s first flight is ambitious, but achievable, the head of the world’s largest aircraft leasing company said Thursday.
But before that, Boeing is likely to sell some more of its extended-range 777-300ER jets, said Steven Udvar-Hazy, chief executive of International Lease Finance Corp.
International Lease Finance already has arranged leases for all 18 777-300ERs it has ordered, Udvar-Hazy said. "Every indication is we’re running short on supply," he said. "We’re going to try to see if we can buy some more and keep those airlines happy."
That brought cheers from several hundred Boeing workers who had gathered for a delivery ceremony for the first 777-300ER, which will be flown by Air France. The airline is leasing it from International Lease Finance, which so far is the leading customer for the new longer-range jet.
Udvar-Hazy said Boeing is pushing hard to sell the 7E7 to his leasing company, which already owns more than 600 Boeing planes. A Boeing sales team made a presentation to International Lease Finance last week, and Boeing Commercial Airplanes chief Alan Mulally flew to Los Angeles for a meeting this week, he said.
International Lease Finance also is involved in talks with some of the airlines to which Boeing is pitching the 7E7, Udvar-Hazy said. The next orders are likely to come from Asia, he said, listing Air China, China Southern and Singapore International Airlines as potential customers, along with Emirates in the Middle East.
Most will seek a combination of leasing and purchase to acquire 7E7s, Udvar-Hazy said.
Struggling North American airlines aren’t ready for the 7E7, he said. "From the financial point of view, I don’t think this year they’re ready to make commitments."
But those carriers will have to start buying if Boeing is to sell 500 7E7s before the plane first flies in 2007, Udvar-Hazy said.
The goal, which Boeing executives discussed earlier this week, is ambitious, the leasing company chief said. "That’s achievable, if we have the North American market stabilize and some of the legacy carriers get into shape so they can afford to buy airplanes."
Boeing will get more high-profile 7E7 orders soon, he predicted.
Udvar-Hazy said he expects Airbus to initially respond by cutting the prices on its A330-200, a similarly sized model that competes with the 7E7. As the 7E7 gets closer to launch, Airbus will likely start upgrading the A330-200.
"I don’t think Airbus will simply watch the show go by," Udvar-Hazy said.
Airbus is touting the fact that the A330-200 is larger than the 7E7, so the cost per passenger is less, he said. Boeing is countering that the 7E7 has lower trip costs and is capable of flying farther.
The competition will only heat up as this summer’s Farnborough Air Show approaches, he said. Both companies will want to have big orders to announce on the aviation world’s largest stage.
Udvar-Hazy praised the 777-300ER, calling it the "culmination of one of the finest programs Boeing has put together."
Several airlines are actively considering the jet, he said, including Cathay Pacific, Virgin Atlantic and KLM. The plane Air France flew away from Everett on Thursday will play an important role in their decision-making, he said. "Many airlines are going to be watching the entry of this plane into service."
The plane has the most powerful engines ever hung on an airliner, built by General Electric. It’s a great airplane, said GE vice president Chakar Chahrour. "This is going to be a world-beater."
Lars Andersen, who led the four-year development of the new jetliner, praised Boeing workers for producing a plane that performed even better than the designers had envisioned. The 777-300ER can fly 575 miles farther than anticipated, and has a fuel consumption rate that’s 1.5 percent better.
He attributed that to "hard work during the detail design to take weight out of the airplane," and to production work that resulted in a "very clean" aerodynamic shape.
All that improved performance, "and the price didn’t even go up," Udvar-Hazy said.
Reporter Bryan Corliss:
425-339-3454 or
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
