Russian Cargo Airline Boosts Boeing’s Tuesday

July 17, 2018

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Russian cargo carrier Volga-Dnepr Airlines got Boeing’s Tuesday Farnborough announcements off at a good clip with a commitment to acquire 29 Boeing 777 freighters in a USD$9.8 billion deal.

The agreement with the air charter provider included confirmation of an order for five 747-8 freighters and provision of a crew pairing solution, in addition to the Letter of Intent for the 29 777Fs.

The 747-8F order is worth USD$2 billion at current list prices, and the 777Fs, to be operated by Volga-Dnepr’s UK-based affiliate CargoLogicHolding, will be worth USD$9.8 billion when firmed up.

Next off the block was an announcement that Air Lease would order and commit to up to 78 Boeing aircraft, including 737 MAX and 787s.

Air Lease’s firm orders are for three 787-9 Dreamliners and 20 737 MAX 8s. The lessor also committed to 55 additional 737 MAX 8s. If all the commitments are converted to firm orders, the deal would be worth USD$9.6 billion at list prices. Air Lease currently has total orders and commitments with Boeing for 88 737s, 52 787s and 21 777s.

Adding to Boeing’s strong order tally for the 737 MAX so far at Farnborough, Aviation Capital Group announced an order for 20 737 MAX 8s, valued at USD$2.34 billion at list prices. The lessor currently has a fleet of 465 owned, managed and committed aircraft.

Aircraft lessor GECAS ordered 20 737-800 converted freighters with an option for 15 more. If the options are taken up, GECAS’ 737-800BCF order book will rise to 50 aircraft, worth almost USD$1.5 billion in total.

Also announced at the Airshow was confirmation of Vistara’s order of six 787-9s and options on four more. The deal with the Tata Group/Singapore Airlines joint venture was originally announced last week.

Boeing also increased its long-term forecast for commercial aircraft to 42,730 new jets, valued at USD$6.3 trillion, over the next 20 years.