B777-200LRF Freighter Values Offer Promise

The Boeing [BA] B777-200LRF has only received nine orders to date but service entry is still some years away. The lack of orders thus far should not be viewed as a negative, however. Were the aircraft available today, lessors would have little difficulty in placing it.

The new freighter offers nearly the same payload as the B747-400 while burning much less fuel. The cargo market is just as cost-conscious as the passenger sector, particularly as fuel costs can represent 50 percent or more of expenses. The demand for the B777-200LRF is therefore growing. Lessors with enough courage to place orders ahead of commitments will be able to secure higher than average rentals. For those lessors who are already large Boeing customers, there will be an opportunity to acquire the B777-200LRF at preferential pricing. Boeing will be anxious to maintain production of the B777-200/-200ER/-200LRF as the introduction of the B787-10 moves closer and as Airbus introduces the A350-900.

Responding to strong demand from cargo operators around the world for an efficient, long-range, and high-capacity freighter, Boeing launched the B777 Freighter in May 2005 with a launch order from Air France. Bringing unsurpassed efficiency to long-haul markets, the B777F will fly farther than any other freighter, and will provide more capacity than any other twin-engine freighter. The B777F will be based on the B777-200LR and is scheduled to enter service in fourth quarter 2008.

With a maximum takeoff weight of 766,000 pounds (347,450 kilograms), the B777F will have a revenue payload capability of 229,000 pounds (103 metric tons). The B777F will be capable of flying 4,965 nautical miles (9,195 km) with a full payload and general cargo market densities. The aircraft's range capability will translate into significant savings for cargo operators by virtue of: fewer stops and associated landing fees; less congestion at transfer hubs; lower cargo handling costs; and shorter cargo delivery times. Boeing is currently considering a longer range B777-200LR that may provide further range opportunities for the freighter.

The B777F will feature capacity able to accommodate 27 standard pallets (96 in. x 125 in.; or 2.5 meters x 3 meters) on the main deck. The industry-standard 10-foot-high (3.1 m) pallets will be accommodated by the large main-deck cargo door. The lower cargo hold has the capacity for 10 pallets, as well as 900 cubic feet (25.5 cubic meters) of additional bulk cargo.

The B777F will feature the lowest trip cost and ton-mile economics of any large freighter. The B777 Freighter will meet QC2 noise standards for accessibility to noise-sensitive airports, an important consideration for freight operators seeking to use the aircraft at night.

Should fuel prices remain at current levels, one should expect considerable interest in the aircraft, over and above the interest likely to be shown for the B777-200 conversion program. The conversion of the B777-300 in the longer term may result in greater volume than the -200F, but a shorter range. However, Boeing will need to be conscious of the potential for Airbus to launch the A350-900F, which would take advantage of new technology, potentially offering better economics than the B777-200LRF.