747’s future secured

Published 9:00 pm Wednesday, December 6, 2006

EVERETT – The Boeing Co.’s 747, dubbed the Queen of the Skies when it was unveiled in Everett 37 years ago, got a key order Wednesday that should keep it flying for many more years.

Lufthansa Airlines became the first carrier to purchase the passenger version of the 747-8, an updated version that includes the technological innovations and controls developed for Boeing’s 787 Dreamliner.

The German carrier ordered 20 747-8s and purchased options for 20 more in a deal that would be valued at $5.5 billion at list prices.

Boeing officials, who had been working with Lufthansa to meet its needs, said the price tag was a lot less.

“Lufthansa operates one of the youngest and most environmentally friendly fleets in the world,” Scott Carson, president and chief executive officer of Boeing Commercial Airplanes, said in a prepared statement. “The 747-8 will use state-of-the-art technology from the 787 Dreamliner to significantly increase the capabilities of Lufthansa’s fleet … We are thrilled that this world-class airline has chosen this world-class airplane.”

The order, huge for Boeing, is also a blow to Boeing rival Airbus. While Boeing had sold 40 freighter versions of the new 747, it had received no orders for the passenger version, called the Intercontinental.

The new 747 is considered a competitor to the A380, a new superjumbo jet developed by Airbus that has hit a series of snags delaying its delivery by two years. Lufthansa’s 300-plus plane fleet has a majority of Airbus jets. Earlier, the Cologne-based airline had ordered 15 A380s.

Officials at the German carrier, which was the launch customer for the Renton-built 737, said they are happy to be the launch customer for the 747-8.

“We are very pleased that we have managed to come together with Boeing again on another aircraft,” Nico Buchholtz, Lufthansa’s senior vice president in charge of fleet management, said at the purchase announcement Wednesday.

Boeing will deliver the first Intercontinental to Lufthansa in 2010, with deliveries scheduled out until 2013.

Lufthansa also placed an order for Airbus’ A340-600s on Wednesday. Buchholtz said he believes the two long-range aircraft compliment each other.

Buchholtz said he believes the A380, which will carry 555 passengers, covers a different market segment than does the 747-8 Intercontinental. The Intercontinental will be stretched 18 feet longer than its predecessor, the 747-400, allowing it to offer 467 seats, Boeing officials said.

Analysts said the purchase may soon trigger more from other airlines.

“Lufthansa is noted for its careful aircraft selection,” said Paul Nisbet of JSA Research. “It must have been somewhat difficult to have made the decision that they did, given Germany’s interest in Airbus. But they did it and I think all major airlines will take notice. And all those who have 747 fleets will take a second look at this.”

Revival of the 747 is important to Everett’s economy.

The plane – built in Everett by a team dubbed the Incredibles – revolutionized air travel. Since the first 747 – named The City of Everett – took to the skies in 1969, Boeing has sold more than 1,700 of the jets.

But Boeing received its last order for a passenger version in 2002. With orders running out for the 767, the company might have been forced to close down production of two wide-body jets in Everett.

The Everett-built 767 or 777 could become the platform for a new Air Force refueling tanker, so Boeing could be looking at keeping all its jet models and adding a new one with the 787 Dreamliner.

Buchholz said his airline’s strategy is to focus on new technology, environmental protection and performance. “The 747-8 represents the essence of this strategy and closes a capacity gap regarding aircraft size between our 300- and 500-seat aircraft in our future fleet,” he added.

The 747-8 offers new engines with enhanced performance that are expected to help reduce fuel consumption by 16 percent compared with the 747-400. Boeing officials say the Intercontinental will reduce noise by about 30 percent, will offer three classes of seating and will offer the lowest of what it calls seat-mile cost of any passenger plane.

The aircraft has a range of 8,000 miles.

Larry Dickenson, head of sales for Boeing Commercial Airplanes, predicted a strong future for the 747-8, noting there’s a huge hole in the market between the 500-seat planes, such as the A380, and the 300 to 400 seat planes.

“We think the 747-8 fits that quite well,” he said.