Boeing Announces Big ILFC 787 Deal, Launches 787-10

Boeing has responded strongly to a spate of airliner order announcements yesterday and today from Airbus at the Paris Air Show by revealing a deal with International Lease Finance Corp. (ILFC) for 63 aircraft, including 52 Boeing 787 Dreamliners.

The manufacturer also confirmed today at the Paris Air Show that it will develop a second stretched version of the 787 (the 787-9 was the first). Known as the 787-10, the new variant is the fourth and largest version of the 787 announced so far and will debut in 2013. Boeing is working with customers to define the 787-10's exact configuration and performance capabilities.

ILFC's huge new 787 order makes the Los Angeles-based company the biggest customer to date for the type. Its purchases of 787s now total 74 aircraft, 73 of which will be 787-8s.

"This order is the culmination of many months of intensive negotiations between Boeing and ILFC," said Steven F. Udvar-Hazy, ILFC's chairman and chief executive officer. "We are experiencing strong leasing demand from airlines all over the world for the Boeing 787 Dreamliner."

ILFC's 63-aircraft order includes a new order for 50 787s and 10 more Next-Generation 737s as well as confirmation that ILFC was the customer for two 787s and one 777-300ER that Boeing had previously listed on its Orders and Deliveries Web site as being for an unannounced customer.

Boeing values ILFC's deals for the 63 aircraft at $8.8 billion at aircraft list prices. However, the leasing company is unlikely to be paying anywhere near that much. Airliner manufacturers often provide price discounts and other concessions to customers, particularly to volume buyers of their aircraft.

The leasing company will take delivery of its first 787 in 2010 and its orders call for deliveries of the type to continue through 2017. ILFC's latest order for 737s extends its delivery stream through 2012. Its recently ordered 777-300ER will be delivered early in 2009.

Including today's announcement, ILFC has ordered 769 Boeing jets since 1977. These include 430 737s; 82 757s; 79 777s; 74 787s; 57 767s; 21 747s; four 727s; 16 MD-80s; and six MD-11s.

With ILFC's latest 787 order in the bag, Boeing continues to maintain that the Dreamliner is the fastest-selling commercial airplane in history. As of today, 45 customers have announced orders for 634 aircraft since the 787 program was launched in April 2004. Boeing values the 787 order book at nearly $100 billion at current list prices.

More than 100 customers around the world have ordered more than 3,800 Next-Generation 737s. Boeing has unfilled orders in excess of 1,500 airplanes valued at more than $100 billion at current list prices. ILFC owns more than 200 Next-Generation 737s and has an additional 41 on order with Boeing.

The 777-300ER is the world's largest long-range twin-engine jetliner and is capable of carrying 365 passengers up to 7,930 nautical miles (14,685 kilometers). To date, ILFC has ordered 28 777-300ERs and has taken delivery of 18.

Boeing took its decision to launch the 787-10 in response to pressure from potential customers --- particularly Emirates Airlines --- and because Airbus has deliberately specified one variant of its competing A350 XWB family, the A350-1000, to be much larger than any 787 variant.

• First Day of Paris Show is Huge for Airbus
• Paris Show Opens with Big Airbus and Boeing Deals
• Virgin Atlantic Orders 15 Boeing 787s and Commits to 28 More