2004 was a rough year for most of the major U.S. airlines, and that meant it was a rough year for Boeing as well. The airlines have not been buying, and China announced last week that it won’t be needing any new airplanes in 2005. But the plane-maker got a bit of a boost last Wednesday when Continental Airlines became the first major U.S. carrier to place an order for the new 7E7. The $1.3 billion order is for 10 aircraft, with the first to be delivered in 2009. “The 7E7 is simply a game changer,” said Gordon Bethune, Continental CEO. “It will position Continental for significant international growth from our New York and Houston hubs over the next decade.” The news met a mixed reaction on Wall Street, where Boeing’s stock dipped anyway. So far, Boeing has firm orders for about 56 of the 7E7s, mostly from foreign carriers. Boeing says its twin-engine, largely composite 7E7 Dreamliner will burn 20 percent less fuel, carry up to 60 percent more cargo and offer wider seats and bigger windows for passengers.
Boeing’s 7E7 Struggling To Take Off
Key Takeaways:
- Continental Airlines became the first major U.S. carrier to order Boeing's new 7E7 (Dreamliner), placing a $1.3 billion order for 10 aircraft to be delivered starting in 2009.
- This order provided a boost to Boeing during a challenging period for the airline industry, with Continental's CEO calling the 7E7 a "game changer" for international growth.
- The twin-engine 7E7 Dreamliner, largely made of composite materials, is touted for 20% less fuel consumption, 60% more cargo capacity, and improved passenger comfort with wider seats and bigger windows.
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