September 2005 
Volume 04, Issue 5 
Boeing in the News

UPS order for 747-400 Freighters

UPS order for 747-400 Freighters caps busy August at BCA

UPS' first direct 747 order to Boeing, for eight 747-400 Freighters, capped a busy August at Commercial Airplanes.

The first delivery from this order is scheduled for June 2007 with two additional deliveries that year, followed by the remaining five deliveries in 2008. UPS is a global leader in package delivery, specialized transportation and logistics services.

The UPS order was notable because the carrier is also a launch customer for Airbus' A380 superjumbo jet, said Teal Group analyst Richard Aboulafia in an Everett (Wash.) Herald report. "This is validation of Boeing's point that the 747 remains a competitive cargo airplane," Aboulafia told the newspaper.

UPS is also a key MD-11 Freighter operator, with a fleet of 20 airplanes and eight more to be delivered in the future.

"The purchase of these Boeing 747-400 freighters is a part of UPS's ongoing effort to accommodate strong international volume growth and will allow UPS to continue to increase capacity on our most important international routes," said Bob Lekites, UPS vice president of Airline and International Operations.

Also last month at Commercial Airplanes:

• Boeing confirmed Chile-based LAN Airlines' additional firm orders for six Boeing 767-300 airplanes. These orders are in addition to six 767s ordered by the airline last year.

• EgyptAir placed a firm order for six 737-800s, with purchase options for an additional six.

• Pegasus Aviation Finance Company ordered six Boeing Next-Generation 737-800 jetliners. This marks the first direct purchase from Boeing by the San Francisco-based leasing company.

• Boeing confirmed the completion of an order agreement with India-based Jet Airways for 10 Next-Generation 737-800s. Jet Airways announced its intention to order the aircraft at the Paris Air Show in June. Deliveries will begin in early 2006.

• Boeing and Shanghai Airlines finalized an agreement for the acquisition of two new 767-300ER airplanes.

• Boeing reached final agreements for 42 Boeing 787 Dreamliner airplanes with four airlines in China (Air China, 15 airplanes; China Eastern Airlines, 15; Shanghai Airlines, nine; and Xiamen Airlines, three), with deliveries beginning in time for the 2008 Beijing Olympics.

Teaming upward

What Connexion by Boeing's deals with Intel, Yahoo! mean


Connexion by Boeing reinforced its growing presence on the Internet as it gained a key approval from Intel and designated Yahoo! as the official search engine for the Web portal airline passengers use to log on to the system.

Intel and Connexion by Boeing jointly said on Aug. 1 the Connexion by Boeing wireless Internet system aboard commercial airliners had been verified compatible with Intel Centrino mobile technology.

"Intel is essentially endorsing the quality of Connexion by Boeing service," said Mark Oser, a Phantom Works strategic development and analysis manager and a member of Connexion's New Technology team in Irvine, Calif. "It means Intel has verified airline passengers will be able to gain access to the Internet and have a high-quality experience while in flight. Assuring the passenger the service will work as advertised will help drive use of Connexion by Boeing."

This announcement marks "just the beginning of a relationship with Intel," Oser said. "Connexion by Boeing has to maintain its quality of service to retain the verification."

Testing measured capabilities such as system speed and ability to use virtual private networks to access corporate intranets. "It's something our competition can't match," Oser said.

Meanwhile, Connexion by Boeing's agreement with the Internet search engine Yahoo! calls for Yahoo! to be the exclusive search engine on the Connexion by Boeing airborne Web portal. Passengers will be able to search the Internet by clicking on a Yahoo! icon on the portal home page. Results will be displayed on a separate page cobranded with the two companies' logos.

The Yahoo! agreement, signed in late July, marks "a first step toward delivering a broader variety of services and developing new revenue streams in addition to our core Internet-access service," said Mike Allen, product manager at Connexion by Boeing.

The agreement will bring additional revenue to Connexion by Boeing by providing marketers the venue to offer their products to in-flight Internet users. Allen said this is the standard revenue model for search engines today.

Connexion by Boeing and Yahoo! are discussing further steps to provide more content for the Connexion by Boeing airborne Web portal, Allen added.

The long-term benefits for airline passengers could be significant, Allen said.

"The ability to have key, relevant information delivered directly on our portal's home page will save people's time and effort," Allen said. In addition, with such new revenue streams, Connexion may be able to offer "new products and services that don't necessarily rely on access fees," Allen said, "but instead are paid for by advertising, sponsorship or marketing revenue."


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