Lufthansa places $5.5B Order for New Boeing 747-8

Chicago-based Boeing Co gets a big confidence boost today when Deutsche Lufthansa AG formally announced that it will buy 20 Boeing 747-8, with another option of 20 more airplanes. This brings Boeing's total aircraft orders to 843 this year compared to rival Airbus's 642 orders.

The 40-year old Boeing has a global resource of 155,000 employees in 67 countries. It is considered to be the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. According to its website, the company has nearly 12,000 commercial jetliners in service worldwide, which is roughly 75 percent of the world fleet.

The Germany-based Airbus, which is owned by European Aerospace, Defense & Space Co, has already received orders for more than 6,300 of which 4,100 airliners were delivered to customers worldwide since its creation 35 years ago. Employing 55, 000 people, it is considered to be the world’s leading manufacturer of commercial aircrafts.

The decision of Lufthansa to add more Boeing passenger airlines in its 400-plus fleet will turn the favors against Airbus. For six years, Boeing has been trailing behind Airbus in terms of orders.

Richard Aboulafia, vice president of the Teal Group, a Fairfax, Virginia-based consulting company, said “An endorsement by a pro-Airbus European flag carrier implies broad market acceptance for the 747, and Boeing parity in the large aircraft niche.''

Airbus has been backlogged in its orders due to wiring problems in its A380 passenger airline. Global delivery company FedEx has even canceled its orders for 10 new A380s and transferred it to Boeing for 15 planes.

Shares of Lufthansa fell 20 cents to 19.97 euros. The company is currently valued at 9.14 billion euros. Boeing shares experienced a slight increase of 10 cents to $90.83, while rival Airbus parent European Aerospace, Defense & Space Co shares are at 23.12 euros as of last closing date.

The new 747-8 features an advanced fuel-efficient engine and a new wing design that could help stretch the airplane's flying range.

Dan Mooney, Boeing's vice president for the 747 program stated, "We were challenged. We could stretch the plane, but not get range. We could get range, but not add capacity.”