EVERETT – The Boeing Co. will soon find out how much an additional 7 feet of aircraft is worth.
By stretching the latest 747 to accommodate 17 more seats, Boeing officials aim to pick up orders for a passenger jet that has been passed over.
And some analysts believe the move will place the new model in more direct competition with rival Airbus’ A380 – a superjumbo jet plagued with production problems.
Overshadowed by the success of its freighter version, the 747-8 Intercontinental hasn’t attracted a single order from a commercial carrier.
Boeing’s Tim Bader, a spokesman for the 747 program, says that prompted the company to talk to customers about what they wanted and to stretch the Intercontinental by 7 feet.
“We’ve been conducting conversations with several customers for months regarding the Intercontinental,” Bader said. “The length has been an issue they identified.”
Although Boeing introduced its 747-8 Freighter at a length of 250 feet, the company introduced a passenger version that was 7 feet shorter and began with a baseline of 450 seats. The additional space boosts the Intercontinental’s seating to 467 with a configuration of three seating classes and even more with a two-class arrangement.
While Boeing officials emphasize that the Intercontinental is aimed at the 747 market of 400 to 500 seats, the additional seating puts the plane closer to the market sought for the 555-seat A380.
“It’s clearly aimed at getting into the A380 segment,” said Richard Aboulafia, an industry analyst with the Virginia-based Teal Group.
Boeing had been discussing the change with customers but made the decision public when Randy Baseler, vice president of marketing for Boeing Commercial Airplanes, noted it on his blog Monday. The decision to increase seating capacity on the Intercontinental comes just weeks after Airbus announced a third delay on the A380 program, pushing the average delivery back two years from its original date. Boeing won’t set the final configuration of either the Intercontinental or the 747-8 Freighter until mid- to late 2007.
Since launching the 747-8 program last year, Boeing has received 44 orders from five customers for the new freighter. The total includes the sale of four aircraft to Guggenheim Aviation Partners in a deal announced Tuesday that is worth $1.12 billion at list prices. The U.S.-based aviation investment firm leases its fleet, including 30 Boeing jets, to cargo operators.
Boeing combined the basic design of the 747 with the technology of its new 787 Dreamliner to create the 747-8. Compared with its predecessor, the 747-400, the 747-8 is designed to consume 15 percent less fuel but offer more than 50 additional seats, providing airlines with 10 percent lower operating costs per seat.
Aboulafia calls the Intercontinental an “either-or” plane for Boeing. Either a major airline will order the Intercontinental, setting off a windfall of requests for the model, or only secondary airlines will pick it up.
British Airways LLC is one of those “blue chip” airlines that Boeing would like to capture with the 747-8. On Tuesday, the airline put out a bid to aircraft manufacturers to replace 34 jets in its aging long-haul fleet, one consisting exclusively of 114 Boeing jets. Twenty of the aircraft that British Airways will retire are 747s.
“For the past four years, we have grown capacity by using our aircraft more efficiently,” said Willie Walsh, chief executive for British Airways. “In order to continue to grow our long-haul business, we now need additional long-haul aircraft.”
The carrier will consider not only Boeing’s 747-8, 787 and 777, but also Airbus’ A330, A350 and A380.
Another industry analyst, JSA Research’s Paul Nisbet, isn’t so sure that Boeing added the extra space to tap into the 555-seat-and-above market. Instead, the company likely made the adjustment based on customer requests and practicality, he said.
“I suspect there are one or more customers out there wanting the extra passenger space,” Nisbet added.
Increasing the commonality between the freighter and passenger versions just makes sense, he said.
“It certainly makes it less complicated,” Nisbet said.
Michelle Dunlop: 425-339-3454 or mdunlop@ heraldnet.com.
The Associated Press contributed to this report.
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