Latest News by Industry
• Boeing will develop 777X freighter and is
testing the passenger version
• Deal for 737 Max jets comes after Airbus
canceled Qatar Airways’ order for 50 A321 Neos
Boeing Co (NYSE: BA)
on Monday formally launched its 777X freighter, the planemaker’s first new jet
program in nearly five years, as Qatar Airways ordered up to 50 wide-body cargo
haulers.
At a signing ceremony with Boeing at the White House, Qatar
Airways said the deal includes a fixed order for 34 of the 777-8 aircraft and
options for 16 jets in the future.
The total purchase would cost more than $20 billion at
current list prices and the largest freighter commitment in Boeing history by
value.
Qatar also said it would buy 25 of the largest version of
Boeing’s 737 Max narrowbody.
Boeing’s share jumped nearly 5% on Monday in New York.
Job creation
The announcement came at a White House ceremony with U.S.
President Joe Biden, Boeing chief Dave Calhoun, Qatar Airways chief Akbar Al
Baker, Commerce Secretary Gina Raimondo, Qatar’s ambassador to the U.S., Sheikh
Meshal bin Hamad Al Thani.
The companies said the order would support more than 35,000
jobs in the U.S. with hundreds of U.S. suppliers from 38 states and provide the
American economy with an annual estimated economic impact of $2.6 billion
during the contract’s delivery period.
“With global supply chains under pressure and high demand
for e-commerce, the performance and capabilities of the fleet is more important
than ever,” the deal said.
Betting on air cargo demand
Boeing is making a big bet on air cargo, a relatively
bright spot in the pandemic, with its 777-8 twin-engine freighter, powered by
General Electric, as the demand for air cargo shoots up amid the global
shipping gridlock.
The cargo jet version of the 777-8, whose test flights
began two years ago, is also a bet that cargo carriers will seek new aircraft
that cut fuel use and emissions.
Boeing says the new freighters will be able to fly almost
with the same payload as a 747-400 freighter but with 25% lower emissions.
Picture Credit: The National