KPLU Local News
(2010-02-08)
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Flickr photo from Craig Damlo
The newest iteration of Boeing's famous jumbo jet - the 747-800 - can be made either as a massive cargo freighter or as a passenger airplane that can seat 467 people. It is 18 feet longer than its predecessor. New engines, bigger wings and improved aerodynamics boost its fuel efficiency. After repeated delays, first flight is a big relief.
"It is a milestone."
But, says local aviation analyst Scott Hamilton, the program probably won't ever make a profit, because its main customers - freight companies - have been pummeled in the financial crisis.
Boeing originally conceived of the program as a derivative, with relatively inexpensive research and development.
"Well, delays and greater engineering than they had expected have undermined that assumption. So the business case has changed for the airplane, the global economy has changed for the airplane, but it's too late to cancel the program."
Boeing's CEO Jim McNierny insists the program can be profitable, if it reaches a target of 350 total sales. Right now, it has firm orders for 108. But the company has already written off more than a billion dollars on the program.
FlightAware:Track the Flight
Boeing Webcasts of 747-8 Frieghter First Flight
Analyst Scott Hamilton's Web Site, Leham Co LLC
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