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Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 10:54 am

Here's a great article from the latest Aviation Week & Space Technology:

Aviation Week & Space Technology
05/10/2004, page 43


Michael Mecham
Seattle



"ILFC, Boeing's biggest customer, sees broad applications for 777-300ER


Long Haul Rising

With an encouraging endorsement from its biggest airplane customer that ILFC is "short on supply," Boeing has delivered the first 777-300ER that it expects to redefine long-haul operations.

The encouragement came from International Lease Finance Corp. Chairman/CEO Steven Udvar-Hazy, who complimented Boeing for exceeding its initial performance specifications with a 1.5% better fuel burn, 900-ft. shorter takeoff field length and 500-naut.-mi. gain in range than originally predicted. "And the price didn't even go up," he quipped.

ILFC is the world's largest aircraft purchaser--more than 600 from Boeing--and is the biggest 777-300ER customer with 18 orders, all of them placed. "So every indication is that we are running short on supply," he says. Six of those orders go to Air France, including the initial delivery, and 12 to Emirates. ILFC is in negotiations with Hong Kong's Cathay Pacific Airways about taking the -300ER (Cathay was a launch customer for the 777-300) to replace the Airbus A340-600s it has leased. Cathay's interest is in nonstop, polar flights from its big Toronto and New York destinations--flights it proved out using the A340.

Udvar-Hazy said negotiations also are underway with Virgin Atlantic Airways for 777-300ERs as replacements for its A340-300s, and with KLM, which is now part of Air France.

Air France, which operates 25 777-200ERs, is buying 10 -300ERs in addition to the six it's leasing, and will use them to replace its 747-400s. Its first -300ER service will be to New York. The aircraft's 7,700-naut.-mi. range makes flights to Tokyo possible, and they will be added in June.

Udvar-Hazy anticipates less demand for the -300ER's companion, the 777-200LR, due for delivery in 2006, because he doesn't see many city pairs that require its extreme range of 9,280 naut. mi. Boeing thinks airlines will develop more of those applications once the -200LR is available.

Udvar-Hazy sees broad customer appeal for Boeing's newest product, the 7E7, although he teases Boeing by saying the "E" in the name stands for "expensive," rather than "efficient," as Boeing asserts. At list prices, the initial aircraft went for $120 million each to All Nippon Airways.

Although Asia and the Middle East are expected to provide the bulk of the 7E7's initial sales, Europe has potential, according to Marlin Daily, who heads Boeing sales there. Lufthansa leads the list of prospective buyers, using the 7E7-3 short-range version for domestic routes to replace its A300s."

Sounds like Boeing has a winner.
 
warren747sp
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 11:35 am

Wow, CX planning to switching out A340-600 o JFK service even before they launched.
What a testimony to aircrafts in question!
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DfwRevolution
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 11:42 am

I'm suprised to hear that ILFC is Boeing's largest customer. Great news for the 773ER, the Triple-7 really is an amazing airframe.
 
MD11LuxuryLinr
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 11:42 am

~"Lufthansa leads the list of prospective buyers, using the 7E7-3 short-range version for domestic routes to replace its A300s." `

I was under the impression that LH didn't want another Boeing product.. Think maybe the 7E7 will have an optional sidestick?
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Leskova
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 4:28 pm

MD11LuxuryLinr, Lufthansa has always said that it does not want to be dependent on just one manufacturer, as they see that restricting their options too much: LH buys whatever fits the mission they want it for - if that's an Airbus, they'll buy an Airbus - if it's a Boeing, they'll buy a Boeing.

And without necessarily wanting to spoil the party, but in what way does this article constitute anything different from the two articles within the last few weeks from Frontier (about the A318 exceeding it's expectations) and, I think Easyjet (not sure if it was EZY, but I remember at least two positive articles discussed around here).

This is, just like the others, PR - did anyone seriously expect Udvar-Hazy to say "The B777-300ER has disappointed us? We really regret buying it and wish we could just dump it somewhere!"???

No question that they probably are happy with the plane - but, just as with the other articles: don't put more weight on this than it deserves...

Regards,
Frank
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scbriml
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 6:29 pm

I'm suprised to hear that ILFC is Boeing's largest customer.

I think they are the biggest buyer of planes in the World. They have also ordered nearly 600 Airbus planes.
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CPH-R
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 7:13 pm

I'm pretty sure that LH is in no rush to replace the A300's - since it's still pretty unique in therms of capacity passenger- & cargo-wise. The same with AA, whom I believe is really making a kill with it on its Caribbean routes.

As for the negotiations with VS - I wonder how fast they'll get rid of the "4 Engines 4 Longhaul" stickers if such a deal ever goes through  Laugh out loud
 
keesje
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RE: Boeings Biggest Customer Likes What It Sees

Mon May 10, 2004 7:39 pm

Two details :

At list prices, the initial aircraft went for $120 million each to All Nippon Airways. Rumours ANA paid actually about half the list prices ...

with KLM, which is now part of Air France
1) KLM is noew part of the Air France-KLM group, as is Air France.
2) Is he saying KLM is looking at the 777-300ER ?

Is ILFC restoring relations with Boeing ? :
[Ilfc Unsure About The 7E7] http://www.airliners.net/discussions/general_aviation/read.main/1547204/
Seems the man got a friendly phone call from Chicago to please not complicate the situation ...  Big grin



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scbriml
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 1:31 am

Seems the man got a friendly phone call from Chicago to please not complicate the situation ...

I wouldn't have thought so. When you buy 600 planes from a manufacturer, who has the upper hand? All they're saying is "not sure about the 7E7 yet, but lets have another 20 of those 773ERs soon." I don't think Boeing is in any position to ask ILFC to shut up.
Time flies like an arrow. Fruit flies like a banana!
 
ConcordeBoy
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 3:14 am

ILFC is in negotiations with Hong Kong's Cathay Pacific Airways about taking the -300ER (Cathay was a launch customer for the 777-300) to replace the Airbus A340-600s it has leased. Cathay's interest is in nonstop, polar flights from its big Toronto and New York destinations--flights it proved out using the A340.

It's no secret that Cathay isn't exactly thrilled with the A346...

...but them opping an aircraft that's both a twin and non-RR is completely out of character, and would be a thrill to see!  Wow!
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
Guest

RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 3:19 am

I heard CX wasnt interested in 773ER's or A346's for the moment.

Udvar-Hazy said negotiations also are underway with Virgin Atlantic Airways for 777-300ERs as replacements for its A340-300s,

yes 'negotiations' to get Branson a better deal on new A346's
 
Mdutch
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 11:38 am



Have heard rumors from within the company that KLM is interested in buying an additional 5 777's.
 
PHXinterrupted
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 12:39 pm

"And without necessarily wanting to spoil the party, but in what way does this article constitute anything different from the two articles within the last few weeks from Frontier (about the A318 exceeding it's expectations) and, I think Easyjet (not sure if it was EZY, but I remember at least two positive articles discussed around here)."

A better question is, what does your comment have to do with this post? Oh wait, you're from Germany, so you had to throw your pro-Airbus comment in there.

Keepin' it real.
 
gigneil
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 12:45 pm

Uhm, his comment wasn't pro-Airbus.

It was calling it like he saw it.

This article is PR. The last few were Airbus ones, and this is a Boeing one. I'm sure you were in the threads about the Airbus ones pointing out that fact.

Whatever.

N
 
FA4UA
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 12:51 pm

I heard rumors among pilots that we might be following AF model in replacing our 744's with 773's. I heard it has something to do with some huge exit package Boeing wants to set up with UA when we exit chapter 11 bankruptcy protection.

Makes sense to me! The 744's are getting a bit old and four engines are twice as many to keep up. Customers love the 777's anyway!

FA4UA
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WidgetBoi
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 12:53 pm

I'd love to see a 777-300ER in United colors!

jeremy
 
Sinlock
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 2:07 pm

Boeings Biggest Customer Likes What It Sees.............

Sorry kids, but the are a few people in line before ILFC for the number of orders.


AA #1017
UA #923
DL #805
ILFC #650




(This includes Boeing and MD orders.)
 
ConcordeBoy
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 2:10 pm

Anecdotal to include those numbers in this...
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
LUV4JFK
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RE: Boeings Biggest Customer Likes What It Sees

Tue May 11, 2004 10:51 pm

Well, I guess Boeing means biggest customer as of right now. When was the last time American, United or Delta purchased an aircraft?

LUV4JFK
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