The Boeing Company
) has received an order worth $1 billion from Cathay Pacific
Airways for three 747-8 Freighter airplanes. The order also
includes options for five additional 777 Freighters.
Besides strengthening its position as a market leader in the air
cargo business, Cathay Pacific Airways seems to be renewing its
freighter fleet with newer, more efficient airplanes. Cathay
Pacific currently operates six 747-400 Freighters, eight 747-8
Freighters, six 747-400ER Freighters and one 747-400 BCF. The new
747-8 Freighters fleet will gradually replace the older fleet.
The Boeing 747-8 is a wide-body jet airliner developed by Boeing
Commercial Airplanes. It is the fourth-generation Boeing 747
version, with lengthened fuselage, redesigned wings, and improved
efficiency. The 747-8 has two main variants: the 747-8
Intercontinental (747-8I) for passengers and the 747-8 Freighter
(747-8F) for cargo.
The 747-8 Freighter gives customers 16% more revenue cargo volume
in comparison to its predecessor like 747-400 Freighter with
comparable trip costs and lower ton-mile costs. Besides providing
enhanced environmental performance, the 747-8 Freighter benefits
cargo operators with the lowest operating costs and best
economics of any large freighter airplane. After 100,000 hours of
service, the 747-8 Freighters have reported a 1% improvement in
fuel burn than expected by customers.
Boeing is the largest aircraft manufacturer in the world in terms
of revenue, orders and deliveries, and one of the largest
aerospace and defense contractors. In fourth quarter of 2012,
Boeing's Commercial Airplanes made 165 deliveries in comparison
to 128 in the year-ago quarter. In 2012, the company
delivered the first 747-8 Intercontinental. Recently, Boeing also
received an order for two Boeing 747-8 Intercontinental from Air
Due to the continuing recovery of the global economy, demand for
Boeing's Commercial Airplanes is benefiting from a steady
improvement in passenger and freight traffic. To catch up with
the expected rise in air traffic and to check fuel bills,
airliners will need to replace older airplanes with new ones.
Also, the U.S. defense budget is skewed towards a number of
prominent Boeing programs. Overall, the growth momentum is
expected to be maintained by its order backlog, planned
production rate increases and a globally diversified customer
base. The company presently retains a short-term Zacks Rank #2
Based in Chicago, Boeing Company is a premier jet aircraft
manufacturer and one of the largest defense contractors in the
U.S. The company's customers include domestic and foreign
airlines, the U.S. Department of Defense, the Department of
Homeland Security, the National Aeronautics and Space
Administration, other aerospace prime contractors, and certain
U.S. government and commercial communications customers.
Other stocks to consider are
Lockheed Martin Corporation
Rockwell Collins Inc.
Alliant Techsystems Inc.
), all with a Zacks Rank #2 (Buy).
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