As per a media report The Boeing Company (BA) might get a big order for its 747-8 model from the Turkish airlines, Turk Hava Yollari AO. Its international rival Airbus is also in contention with its A-380 model. The Turkish airline is planning to order for 15 jumbo jets valued at $4 billion.
Turk Hava Yollari has plans to expand its operations in the emerging markets and add new routes. These expansionary moves will surely spice up competition in the European airlines sector. The new airplanes scheduled to be delivered after 2014 will enable the Turkish airlines to take on the challenge.
Boeing’s 747-8 model is a high quality airplane capable of carrying in excess of 460 passengers for a distance of 8,000 nautical miles (14,815 km) and competes with Airbus’ A-380. The ground-breaking technology used to manufacture 747-8 models makes it cheaper to operate in comparison to its peers.
Passenger comfort in conjunction with the ability to fly long distances makes 747-8 popular among airline operators in the international segment. The 747-8 model plays an important role in Boeing’s Commercial Airplanes segment. In the first quarter the company delivered 6′ 747-8 airplanes and has plans to deliver 35 to 42 ‘747-8 aircrafts in 2012.
We believe Boeing’s model has a better chance of clinching the deal from its international arch rival Airbus, as the former consumes 11% less fuel per passenger compared to Airbus. On top of it Boeing’s 747-8 is also 10% lighter per seat than A-380, which results in a seat-mile cost savings of 6% for the operators. Besides, 747-8 is easily compatible with existing infrastructure and ground equipment available in the airports, whereas many airports across the world had to expand their facilities to accommodate A-380.
Boeing expects to generate revenue in the range of $78-$80 billion, of which the Commercial Airplanes segment is estimated to contribute in the range of $47.5-$49.5 billion in 2012. Commercial deliveries in the fiscal are expected between 585 and 600 airplanes.
The Boeing Company currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with the likes of General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) in the defense niche.
Based in Chicago, The Boeing Company designs and produces commercial airplanes, defense systems, and civil and defense space systems.
