RE: Question for board - NWA orders 787
posted on
May 06, 2005 03:50AM
Larry
AFX News Limited
Boeing wins order for 787s from Northwest Air - UPDATE 1
05.05.2005, 08:53 PM
SAN FRANCISCO (AFX) -- Northwest Airlines on Thursday said it`s ordering 18 of Boeing Co.`s next new commercial jet, the 787 Dreamliner, and could take as many as 50 more planes as part of the deal.
The 18 planes are worth almost $2.2 billion at a list price of $120 million each. If Northwest goes for all 68 jets, the deal`s value would rise to about $8.16 billion at list prices.
For Chicago-headquartered Boeing , it is the third large deal recent announcement for new 787s. Billions in orders from Air Canada and Air India stole headlines last month.
It is a rare domestic order for Boeing, which is also selling the 787 to Continental Airlines and upstart Primaris Airlines. Asian airlines so far have had a much bigger appetite for the new plane.
Northwest , which plans to be the first carrier in North America to put the plane into service in 2008, plans to seat 36 passengers in its business class service and 185 in coach. Deliveries will start in August of that year. Six aircraft are set to be delivered a year through 2010.
Northwest also flies Airbus jets, as well.
The 787 is designed for point-to-point travel. It will be more fuel efficient than current planes with new engines that will help cut consumption. The jet will use more composite materials than current aircraft, including the fuselage and wings. It`s so far sold out through 2008 and 2009, Boeing said late last month, and is almost sold out through 2010.
Airbus, meanwhile, is marketing a plane called the A350, which is targeting customers who might otherwise be drawn to the twin-aisle 787.
But the European jet maker is spending the bulk of its efforts, and dollars, on the gargantuan A380 -- a jet that is bigger than Boeing`s 747. The jet, which can seat more than 600 people, is designed to fly between major airports around the world. From there, smaller planes will ferry passengers to other destinations.
Boeing is basing its investment in the new design on a different thesis: passengers want to fly directly to their destinations and do not want to change planes if they don`t have to.
The A380 recently underwent its first flight and will be shown off at the Paris Air Show this summer. The 787 is still a concept with a first flight set for 2007