The Boeing 747 assembly line has been thrown a substantial lifeline with a major order from UPS. The freight service has ordered 14 new 747-8 freighters and taken options for 14 more as part of its international fleet modernization. It’s the biggest 747 order since Lufthansa bought 20 in 2006. There have been steady predictions from analysts about the end of the line for the first jumbo jet and the UPS order is considered a respite rather than a rescue, especially for passenger versions of the aircraft. Airlines are flocking to new twin-aisle, twin engine aircraft for their long-haul operations and retiring their 400 series and older 747s.
For UPS, the order is strategic. The gas-guzzling older models are still cost effective on high-volume short routes but the numbers start to fall apart on long-distance flights. All of the new aircraft will be put on international routes and the older jumbos will be shifted to shorter trips. Not only do the new jumbos use less fuel, they carry 16 percent more freight and make less noise. The order brings Boeing’s confirmed backlog for 747s to 29 and UPS won’t get its first new airplane until the end of 2017.
