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Boeing, Lufthansa Announce Order for 747-8 Intercontinental

Analysis

Seattle (BOEING) - The Boeing Company [NYSE: BA] and Deutsche Lufthansa AG today announced the carrier ordered 20 747-8 Intercontinental jetliners plus 20 purchase rights. Lufthansa is the first airline to place an order for the passenger version of the fuel-efficient airplane.

The Lufthansa order, with a total average list-price value of $5.5 billion, is scheduled for delivery beginning in 2010. This order is a primary component of the airline's plan to modernize its fleet and increase environmental stewardship.

"Lufthansa operates one of the youngest and most environmentally friendly fleets in the world," said Scott Carson, president and chief executive officer, Boeing Commercial Airplanes. "The 747-8 will use state-of-the-art technology innovations from the 787 Dreamliner to significantly increase the capabilities of Lufthansa's fleet. This airplane improves upon the economics of the 747-400, while greatly enhancing fuel efficiency, reducing emissions and noise. We are thrilled that this world-class airline has chosen this world-class airplane."

The 747-8 will reduce fuel consumption and carbon dioxide emissions by 16 percent compared to the 747-400s it will replace. It also will meet and exceed the nitrogen-oxide regulations being incorporated by the Committee on Aviation Environmental Protection.

In addition, the 747-8 will generate 30 percent less noise then its predecessor. It will meet the London Quota Count (QC) 2 metric, which dictates operating hours both into, and out of, London-area airports based on noise levels.

"The 747-8 is a perfect complement to our fleet in the 400-seat category and environmental initiatives," said Nico Buchholz, senior vice president, Corporate Fleet, Deutsche Lufthansa AG. "Environmental protection and sustainability, underpinned by investment in innovation, are integral elements of our corporate strategy. The 747-8 represents the essence of this strategy and closes a capacity gap regarding aircraft size between our 300- and 550-seat aircraft in our future fleet."

The 747-8 achieves improved performance and appeal by incorporating many of the innovations from the 787. Most notably, it will feature a new wing design, next-generation General Electric GEnx engines, an upgraded flight deck and a new interior.

A new wing design integrates the latest in aerodynamic advancements. Some of the key design features include new state-of-the-art raked wing tips, a new flap system and increased fuel capacity. This enables the 747-8 to fly farther and more efficiently.

"The GEnx engines incorporate advanced, proven technologies from our highly successful GE90 engines as well as new innovation from GE's ongoing research and development programs," said Tom Brisken, general manager of the GEnx program. "These advancements provide customers with improved fuel efficiency, reductions in emissions and noise, and a lower cost of ownership, while allowing customers to generate additional revenue with their ability to carry more passengers and cargo."

In addition to the 747-8 Intercontinental's enhanced performance, the airplane will feature a new interior with 787-like amenities. The interior will incorporate new mood-lighting technology, as well as new lavatories that are being developed for the 787. The newly designed entryway of the 747-8 takes passengers past a concierge station into the elegantly contemporary new interior. A dramatic stairway leads to the upper deck. The new curved, upswept architecture gives passengers great space and comfort, with more room for personal belongings.

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