UPS orders eight Boeing 747-400 freighters
As part of its on-going effort to accommodate strong international volume growth, UPS (NYSE:UPS) today announced a firm order for eight new Boeing 747-400 freighters from Boeing Co.
Terms of the deal were not disclosed.
Deliveries of the 747-400’s will begin in June 2007 and run through 2008. UPS has selected General Electric to provide engines for the new aircraft.
“These Boeing 747-400 freighters will allow UPS to smoothly increase capacity on its most important international ‘trunk’ routes connecting Asia, Europe and North America,” said Bob Lekites, UPS vice president of airline and international operations.
UPS today relies on the Boeing MD-11 freighter as its primary international workhorse. UPS has 20 of those planes and another eight on order. The new 747-400 aircraft, which can handle a larger payload than the MD-11, will be used to “upsize” MD-11 routes as international volume grows.
In its most recent second quarter, UPS’s export volume grew an impressive 18.2%, led by Asia export volume gains of 39.5%. China again drove Asia with export volume rising 99%.
The Boeing 747-400 freighter has the capacity to carry a structural payload of 250,000 pounds with a range of 4,400 nautical miles.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information, and funds. Headquartered in Atlanta, UPS serves more than 200 countries and territories worldwide. UPS stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
