Paul Lewis/SINGAPORE Guy Norris/LOS ANGELES
BOEING IS MOUNTING an intensive last-minute push to launch the Boeing 747-500/600X growth derivatives at the Farnborough air show, which starts on 2 September, but the US manufacturer is struggling to win sufficient airline support - partly caused by the $230 million price tag put on the -600X version.
The US manufacturer is pressing seven key international carriers to sign "commitments" for the 747-500/600X, in the form of memoranda of understanding (MoU). Boeing hopes then to go to its board of directors for formal approval to proceed.
Talks centre on British Airways, Cathay Pacific Airways, Malaysia Airlines (MAS), Singapore Airlines (SIA) and Thai Airways International, each requiring an initial six aircraft - predominantly the longer-range 747-600X version. United Airlines is also understood to be looking at seven aircraft and Japan Airlines at another five.
MAS is the airline expressing the strongest support for an early launch and has already made provision to convert outstanding 747-400 options to the new versions. The other carriers are hesitating for a variety of reasons, however.
The chief complaint is that Boeing is not giving airlines sufficient time to make an evaluation and decision, having presented firm proposals only within the last month. "It's important not to go rushing into orders just because of meeting the deadline of some air show somewhere," says BA chief executive Robert Ayling.
The sentiment has been echoed by senior figures within Cathay, SIA and Thai. "There is no way we can get all our people to evaluate the aircraft in its entirety within two months," says one executive.
Shock at the 747-600X's proposed $230 million price-tag has also caused many airlines to pause. While the price is quoted in 2001 dollar values, it represents a major hike, from the 747-400's list price of $165 million. Potential launch customers had been expecting "a slightly more incentive-based price" of $200 million or less.
Carriers are also demanding more precise payload/range guarantees from Boeing before committing to the new aircraft. BA is insisting on the -600X being capable of flying from London non-stop to Singapore in winter, with no payload restrictions, while Cathay wants a similar performance commitment for the -500X on routes from Hong Kong to Toronto and New York.
The -600X is a 548-passenger aircraft with a range of 14,350km (7,750nm). The -500X will carry 462 people a distance of 16,100km.
Key Asian carriers, also have privately expressed the wish to hold off on a 747-500/600X commitment, until more detailed information is available from Airbus on its planned A3XX.
Boeing, however, has given itself until the end of November to launch the 747-500/600X programme, if it is to meet the self-imposed entry-into-service dead- line of December 2000.
A Boeing source admits that it "-could be tough" for some carriers to be ready to commit to the 747-500/600X by the time of the Farnborough show. A final airline-advisory-group meeting will be held in Seattle on 29 August, the same day that the Thai board will decide on the MoU and three days before the start of Farnborough, when the new 747's baseline specification will be finalised.
See Feature, P54.
Source: Flight International
