The Boeing Company's [NYSE: BA] board of directors has approved the formal launch of the new
7E7 Dreamliner passenger jet based on today's firm order for 50 7E7s from ANA (All Nippon Airways) and the overall strong business case for the new airplane. The ANA order is the largest launch order in history for a new Boeing commercial jet.
The deal for 50 7E7 airplanes is worth approximately US$6 billion at list prices. ANA is scheduled to begin taking deliveries of the 7E7 in 2008.
"Airline interest in the 7E7 has been extraordinary. The size and speed of this order validates our view of the market and demonstrates the tremendous demand for the performance and value provided by the 7E7," said Alan Mulally, president and CEO of Boeing Commercial Airplanes.
"ANA is one of the most respected airlines in the world and has been at the forefront of aviation as a launch customer for the successful 767 and 777 programs. It is an honor for us to have ANA as the launch customer for the 7E7. We are excited to continue working together on the airplane that will set the standard for every one that follows it," Mulally said.
As the launch customer, ANA -- the largest Boeing 767 operator outside the United States -- will be an integral partner in developing the 7E7 family of airplanes. The Boeing 7E7 Dreamliner is being designed with airlines, passengers, investors and the environment in mind. The technologically advanced airplane will use 20 percent less fuel than today's airplanes of comparable size, provide customers with up to 60 percent more cargo revenue capacity, and present passengers with innovations including a new interior environment with higher humidity, wider seats and aisles, larger windows, and other conveniences.
"One of ANA's commitments is to offer dreams and experiences to people around the world," said Yoji Ohashi, president and CEO -- ANA. "By being the launch customer for the 7E7 Dreamliner, ANA will have a direct influence on what passengers throughout the world will experience when they fly in this new airplane, and we will be the first airline to bring back the joy of flying to the 21st century," he said.
Boeing has been in discussions with more than 50 airlines about the design of the 7E7. In December 2003, Boeing President and CEO Harry Stonecipher announced the decision by company's board of directors to begin offering the airplane for sale to the world's airlines.
"The 7E7 is a true game-changer for the industry and the traveling public," said Stonecipher. "Our Commercial Airplanes team has done a magnificent job bringing it to market. Launch of the 7E7 clearly demonstrates our commitment to innovation and leadership in commercial aviation."
Boeing also said today that it has extended firm offers for the 7E7 to more than a dozen airlines around the world. "We expect additional orders in the coming weeks and months," said Mulally.
The 7E7 is a family of airplanes in the 200- to 300-seat class that will carry passengers on routes between 3,500 and 8,500 nautical miles (6,500 to 16,000 kilometers). The 7E7 will allow airlines to offer passengers more of what they want: affordable, comfortable, non-stop, point-to-point travel to more destinations around the world. In addition to bringing big-jet ranges to mid-size airplanes, the 7E7 will fly at Mach 0.85, as fast as today's fastest commercial airplanes, while using much less fuel. Also, for the first time in commercial jet history, the 7E7 family will offer a standard engine interface for the two types of engines to be offered on the airplane, the General Electric GENX (GE Next Generation) or Rolls Royce's Trent 1000, allowing the 7E7 to be fitted with either manufacturer's engines at any point in time. Production of the Dreamliner will begin in 2006. First flight is expected in 2007 with certification, delivery and entry into service in 2008.
ANA came into existence in 1952, and more than 50 years later is now one of the 10 largest airlines in the world, carrying with its sister companies almost 51 million passengers every year to 46 destinations in Japan, and to 21 overseas cities in Asia, Europe and the United States. ANA joined Star Alliance in October 1999, giving passengers seamless access to a network of more than 700 airport destinations in 128 countries, and reciprocal benefits such as mileage accrual and redemption, and lounge access.
Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this release may constitute "forward-looking" statements within the meaning of the Private Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," and similar expressions are used to identify these forward-looking statements. Forward-looking statements in this release include, but are not limited to, our expectations regarding the market, orders and completion of development and manufacture of the 7E7. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Our actual results and future trends may differ materially depending on a variety of factors including our successful execution of development and manufacturing plans, the actual outcomes of certain pending sales campaigns, U.S. and foreign government procurement activities; unanticipated financial market changes, international competition in the commercial areas; performance issues with key suppliers, subcontractors and customers; factors that could result in significant and prolonged disruption to air travel worldwide (including future terrorist attacks); worldwide political stability; domestic and international economic conditions; legal, financial and governmental risks related to international transactions; legal proceedings; and other economic, political and technological risks and uncertainties. Additional information regarding risk factors is contained in our SEC filings, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2003.
T. May Kulthol
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