Boeing launches 777X freighter with Qatar Air ordering 50 jets
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
• 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.