Skip to comments.UPS Orders Eight Boeing 747-400 Freighters
Posted on 08/17/2005 8:09:49 AM PDT by ConservativeStatement
LOUISVILLE, Ky.--(BUSINESS WIRE)--Aug. 17, 2005--As part of its on-going effort to accommodate strong international volume growth, UPS (NYSE:UPS) today announced a firm order for eight new Boeing 747-400 freighters from Boeing Co.
Terms of the deal were not disclosed.
Deliveries of the 747-400's will begin in June 2007 and run through 2008. UPS has selected General Electric to provide engines for the new aircraft.
"These Boeing 747-400 freighters will allow UPS to smoothly increase capacity on its most important international 'trunk' routes connecting Asia, Europe and North America," said Bob Lekites, UPS vice president of airline and international operations.
UPS today relies on the Boeing MD-11 freighter as its primary international workhorse. UPS has 20 of those planes and another eight on order. The new 747-400 aircraft, which can handle a larger payload than the MD-11, will be used to "upsize" MD-11 routes as international volume grows.
In its most recent second quarter, UPS's export volume grew an impressive 18.2%, led by Asia export volume gains of 39.5%. China again drove Asia with export volume rising 99%.
The Boeing 747-400 freighter has the capacity to carry a structural payload of 250,000 pounds with a range of 4,400 nautical miles.
UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information, and funds. Headquartered in Atlanta, UPS serves more than 200 countries and territories worldwide. UPS stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
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And this is on Forbes' website:
SG Cowen suggested buying Boeing (nyse: BA - news - people ) shares for "fair value" potential of $88 by late 2007.
SG Cowen said Boeing is a play on the recovering commercial aerospace cycle and has healthy new product momentum, cash redeployment potential, and a new chief executive "with skill sets to take [Boeing] to the next level." Near-term catalysts for Boeing include an expected 747 Advanced launch decision "in the next month or so" and third-quarter results, although "labor negotiations are an issue."
The research firm said its 2006 and 2007 earnings-per-share estimates of $3.35 and $4.50, respectively, have upside given the vigor in aircraft demand and Boeing's "apparent conservatism" in guidance.
Just another sign of a failed economy
How can they still have eight MD-11s "on order" ?
They still build MD-11? I thought that plane was closed down to new production long ago.
The last MD-11 built, an MD-11F, was delivered to Lufthansa Cargo on 22 Feb 2001.
That said, I believe Boeing has a program where MD-11 airliners are converted to MD-11 freighters; this is probably what UPS has ordered.
Maybe this explains -- UPS release from earlier this year:
UPS Secures 11 Boeing MD-11 Freighters
LOUISVILLE, Jan. 28, 2005 UPS (NYSE:UPS) today announced it will acquire 11 pre-owned Boeing MD-11 aircraft to expand the capacity of its air network.
The additional aircraft bring the number of MD-11s in UPSs fleet and on order to 28. Fifteen of the 28 planes now are in service.
UPS will take delivery of the first of these 11 aircraft during this years first quarter, with the remaining deliveries extending through 2007. The sale was arranged by Focus Aviation on behalf of Central Air Leasing and at one time, the 11 were flown by Swiss. Financial details were not disclosed. The acquisition will not require any adjustment to capital spending plans.
The MD-11 has the technology, solid performance and strong operating economics that make it a wonderful fit for our international network, said Bob Lekites, vice president of UPS Airlines and international operations.
The MD-11 has the capacity to carry approximately 190,000 pounds of cargo and a range of nearly 3,900 nautical miles. Although the MD-11 serves as UPSs primary workhorse on international routes, the addition of these planes will support the growth of the entire integrated global network. UPSs domestic overnight and international air businesses have been growing strongly. During the fourth quarter of 2004, for example, U.S. domestic overnight volume grew 4.1% and average daily international export volume rose 13.5%, with Asia export volume up 34% and export volume out of China up 125% compared to the prior year.
We continually evaluate and adjust the companys air network to meet the needs of our customers, Lekites added. Our strong growth has increased our need for large aircraft and the MD-11 is part of that solution.
UPS is the worlds largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information, and funds. Headquartered in Atlanta, UPS serves more than 200 countries and territories worldwide. UPS stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
# # #
Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
Does each plane come with a Wilson the Volleyball,or is that just FEDEX
I thought Northwest Airlines and Fed Ex owned all the DC-10s ever made...
There's no substitute for the 747, and I bet these eight 747's will accomplish something that the A380 will never be able to... make a profit for their company.
Smug bastard. Hope he gets to eat his 380s.
for those who don't know all the model numbers, can someone explain the 747-400? Is this that comeptor to the a380 that was going to be built?
and now a really silly question, can a modern day 747 use a shorter runway? This way some of the regional airports don't have to extend (buy land) runways?
Please have your sarcasm detector recalibrated. It appears to be reading too low.
The 747-400 is the latest-and-greatest version of the 747, with advanced electronics and a "glass cockpit"--the instruments are on LCD screens or CRTs, very few analog gauges. It's got more range, more capacity, and more power than the older 747-200s and -300s.
Boeing is talking about something called the "747 Advanced", which would be sort of a competitor to the A380. It would invove stretching the 747-400 to lengthen the fuselage, changing the wings, putting in the advanced new engines being developed for the 787 Dreamliner, and all sorts of other things. But the 747 Advanced is still not a definite yet.
My sarcasm detector has now been adjusted upward by 5.2%. Recalibration complete.
Good. Maybe now I can get my Club Gitmo gear...
The problem with the 380 isn't the length of the runway, it is the weight and width of the plane. Taxiways and ramp areas are probably going to need more work than the runways, and for the passenger versions, work will be needed on the terminals as well.
Atlanta makes a good example. Planes can currently park back to back at different terminals, with other planes passing both ways between them. Throw in some 380s, and there is only room for one way traffic between the terminals. The runways have plenty of length, but there are clearance issues to the side in some cases.
The horrible 1979 incident in Chicago was an AA DC-10. I think Delta had them in their fleet, too.
We lived in Prior Lake, Minnesota for 16 years and got to know the sound of the DC 10's 'grinding' as they went over. A couple of months ago, I was in Memphis on a sales call and heard that familiar nose...a DC 10 or MD 11 Fed Ex freighter.
Delta had a very few DC-10-10s, and not for very long; they got them in a merger with another airline (I think Western) and sold them off. (Delta used L-1011 Tristars as the backbone of their long-haul fleet from 1978-2001.)
They did have eight or ten MD-11s, they stopped flying them last year. A couple got sold or leased to World Airways (at least one's still flying with the red-and-blue Delta stripes under the World logo), the rest are, as far as I know, sitting out in the desert in California, unless UPS or another operator has picked some up for freighter use.
The MD-11 never really worked as a passenger liner for whatever reason, but it's sure found a second life as a freighter.