The Boeing Company (BA) said that Lufthansa Cargo has finalized an order valued at $1.35 billion for five Boeing 777 Freighters. The airplanes will help Lufthansa Cargo to modernize and expand its fleet. The company has also received orders for five more 767s from LAN Airlines of Chile valued at approximately $822.0 million.
The 777 Freighter is the world's longest range twin-engine freighter manufactured by Boeing Commercial Airplanes. The 777 Freighter can fly 4,900 nautical miles and has a full payload of 225,200 pounds.
The aircraft is powered by General Electric Company’s (GE) GE90-110B1L engines and meets QC2 noise standards for maximum accessibility to noise-sensitive airports. Besides other advantages, the freighter’s fuel efficiency makes it the aircraft of choice for many airliners who prefer it over other wide-body jets and uses it on long-haul, transoceanic routes.
As of March 2011, 60 customers had placed orders for 1,209 aircraft of all variants, out of which 923 were delivered. Through May 17, 2011, the company had 61 net orders for Boeing 777. Including this order from Lufthansa Cargo, a total of 88 777 Freighters have been ordered, of which 39 have already been delivered. Its direct market competitors include the Airbus A330-300 and the A340, with the upcoming A350 XWB and Boeing 787 Dreamliner programs currently in development.
Coming to the Boeing 767, it is a mid-sized wide-body twin-engine airliner produced by Boeing Commercial Airplanes. Boeing 767 versions have a range of 5,200 to 6,590 nautical miles and have the capacity to carry 181-375 passengers. Through May 17, 2011, the company had 13 net orders for the Boeing 767.
Boeing is among the best-positioned in its sector due to its balanced exposure to commercial aircraft and defense equipment. With the gradual recovery of the global economy, we believe freight and passenger traffic will improve going forward. Meanwhile, the U.S. defense budget is also skewed towards a number of prominent Boeing programs.
However, in the near term, headwinds over 787 delays and expected cutbacks in the U.S. defense budget loom large over the current valuation of the company. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Based in Chicago, The Boeing Company is a premier jet aircraft manufacturer and provider of freighter capacity to the air cargo industry, offering the most complete family of freighters, which provide superior efficiency and operational economics.
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