The 2006 Current Market Outlook forecasts that large airplanes will account for 3% of the airplane investment opportunities and 10% of the airplane investment value over the next 20 years. While liberalization of commercial aviation markets will hold average airplane size steady, there will be a market for about 990 large airplane (about 600 passenger jets and 300 freighters) s to serve the world’s busiest, long-distance routes and markets where competition is constrained by regulation or takeoff slot limitations.

The new 747-8 Intercontinental passenger jetliner and 747-8 Freighter are excellently positioned to capture the major part of the large airplane market over the next 20 years. With 1,475 total orders and 1,379 airplanes already earning revenue in airline fleets, the 747 family will continue to be the prevalent airplane in the market it created. Easy to integrate into the fleets of current 747 operators, the new 747-8 offers longer range, larger revenue payload, and superior environmental performance, while reducing operating costs. But one of the 747-8’s most valuable assets is its ability to serve the 210 airports where the 747-400 is currently welcome.

Providing a low-risk path for continuous upgrades, the 747-8 allows operators to replace older, less efficient airplanes, or improve the efficiency and economics of their fleet. This continuity enables operators to preserve the valuable service networks they have developed for the 747 family. In particular, because Boeing long-range airplanes are designed to complement each other in commercial operations, airlines can introduce the 747-8 into their networks without eroding the frequency of flights or sacrificing nonstop service.

Flexibility Creates Value
Even the healthiest passenger and cargo markets are subject to fluctuation—by season, day of the week, time of day, or even direction of travel. Airlines must routinely shift airplanes to match demand that migrates from market to market within their networks. Scheduling the right airplane for the right market spells the difference between profit and loss. The 747-8 is the right size and has the right capabilities to serve multiple markets and turn a profit on a variety of routes.

Building a continuous family of aircraft that complement each other in commercial service is an important element of the Boeing product strategy. The Boeing product line includes five sizes of airplanes—from 200 seats to more than 450 seats—that share the same speed, range, comfort, and economics. The 467-seat 747-8, as the world’s only airplane in the 450-seat market, plays an indispensable role, serving high-density long-range routes.

Designed to replace older 747s that will be retiring from service over the next 20 years, the 747-8 will eventually succeed the 747-400 as the icon for long-distance comfort. There is no other airplane that is the right size to serve the 747’s varied missions—providing nonstop passenger service between the world’s busiest long-distance city pairs and carrying more than half the world’s air cargo, as measured by value.

A spacious entry way, vaulted ceiling, and elegant cabin architecture welcome passengers aboard the 747-8 Intercontinental. During the flight, cabin lighting varies continuously to match the time of day, helping passengers adjust naturally to the destination time zone.

A Worthy Successor to the 747-400
It takes more than superior efficiency and increased revenue payload to make the 747-8 a worthy successor to the 747-400. Airlines challenged Boeing to create a new 747 that offers breakthrough environmental performance, new sources of revenue, and the revolutionary passenger experience pioneered by the 787 Dreamliner. Financiers challenged Boeing to design an airplane that maintains superior asset value and liquidity throughout its life cycle.

Technologies from the 787 rose to the challenge, which is why the newest 747 received the “-8” designation. In addition to GEnx engines, advanced light-weight materials, high-technology flight-deck features, and an innovative wing design for superior efficiency and operational economy, the 747-8 incorporates an all-LED lighting system, more overhead stowage, and cabin architecture inspired by the 787 to delight passengers who have come to regard the 747 as the pinnacle of airborne elegance.

In addition, the 747-8 offers new sources of revenue by making productive use of the space above the main passenger deck. Equal in volume to a 737 passenger cabin, this SkyLoft allows airlines to move equipment that doesn’t generate revenue, such as galley carts, from the main deck. This frees up main deck space for additional seats or premium comfort and convenience features. The most innovative use of this space is for SkyLoft suites, premium passenger amenities that can be outfitted as a business center, as office spaces, as sleeping compartments, or as a lounge.

Redefining environmental responsibility in the large airplane market, the 747-8 uses less fuel and produces lower carbon dioxide emissions than its predecessors or competitor. The 747-8 also meets or exceeds NOX emission targets of the Committee on Aviation Environmental Protection. The quietest large airplane ever built, the 747-8 will produce 30% less noise on takeoff than the 747-400. Together, these environmental improvements mean lower landing and navigation fees and fewer airport emissions charges.

The technologies and features integrated into the 747-8 enhance the airplane’s market flexibility, passenger appeal, and revenue earning potential, while reducing economic risk and improving liquidity for leasing companies and airline investors. With a large pool of potential operators and more standard features, the 747-8 is easy to transition from one operator to another. The 747’s unequalled success as a freighter ensures that the 747-8 will enjoy a long service life, extending well beyond its decades of service in the passenger role.

Because the 747-8 fits easily into airports and airline fleets around the world, demand will remain strong and placement opportunities will be plentiful on all six continents currently served by the 747-400, providing an excellent hedge against regional economic down cycles and shocks.