Boeing not worried by lack of orders for new 747 passenger jet

The head of the team developing Boeing's larger, more fuel-efficient 747 says he's not worried the company hasn't yet won any orders for the passenger version of the jumbo jet.

The plane manufacturer launched its 747-8 last November to put competitive pressure on rival Airbus and its A380 superjumbo.

Boeing has won orders for 18 747-8 freighters from two cargo carriers so far. Jeff Peace, vice president and manager of the program, said he expects orders for the so-called Intercontinental passenger plane to come soon.

"We've got a lot of proposals out for the Intercontinental. We fully expect to receive the first order this year," Peace said Thursday in a conference call with reporters.

Peace said soaring fuel costs have forced many airlines to take a decidedly cautious approach to updating their long-haul fleets with new double-decker four-engine planes. He also said many airlines are happy enough with their four-engine 747-400 fleets and are not in a hurry to replace them.

Airlines have more choices to make today than when the 747 was their only option for flying a lot of people on really long routes, Peace said.

"Now they're looking at replacing and augmenting their 747-400 fleets with 787s, with 777s, with 747 Intercontinentals and with A380s — sizes all the way from 250 seats to 550 seats," Peace said. "That's complex analysis to try to figure out 10-15 years down the road what routes you're going to fly, what your customers are going to want, what the configuration of the airplane should be in terms of comfort."

Boeing says the 747-8 will seat 450 people, up from 416 in the 747-400. The A380, which will replace the 747 as the largest passenger jet when it enters commercial service at the end of the year, can hold about 550 passengers in a standard three-class configuration.

Boeing says its 747-8 will be more fuel-efficient than the 747-400 or the Airbus plane because of technology borrowed from the new twin-engine 787.

It will be nearly 12 feet longer than the current 747, which is 232 feet long, and capable of flying 9,200 miles.

Peace said Boeing expects orders for both passenger and freighter 747-8s later this year. So far, it has won 10 orders from Luxembourg-based Cargolux Airlines International, with purchase rights for 10 more, and eight from Nippon Cargo Airlines of Japan, with options for six more.

Boeing will begin delivering those planes in the latter half of 2009, and phase out production of the 747-400.

The company has projected it will win about 450 orders for 747-8 jets over the next 20 years — about 300 passenger planes and 150 freighters, or what it deems will be half the market for jumbo jets.