Cargo makes up a large junk of business for most airlines, and does not have the problem of demanding passengers as their normal services require. So the announcement that Boeing is coming out with a model that is essentially meant for cargo is welcome news for airlines. The Boeing 777 airliner in this configuration will be the largest cargo carrying twin engine plane in the world. The Boeing 777 also has the fuel efficiency that makes it one of the best in the aircraft that are essentially meant for air cargo companies. And imagine being able to fly a distance of 4965 miles with a full payload. These incredible statistics have allowed Boeing to rake in a lot of orders for the Boeing 777 which takes off with a weight of 766,000 pounds of which an incredible 229,000 is cargo. Boeing expects that their future as far as commercial aviation is concerned, is linked to the demands made by the air cargo segment of airline business. hauling contract

Air freight is said to have a very bright future and analysts predict an eighty five percent increase in business by the year 2025. This will require a lot of aircraft, and this would mean converting aircraft and fitting them out to function as air cargo carriers. The 747 model of Boeing is a favorite for such retrofits, as they can easily take pallets that are 10 feet high. Higher pallets mean faster loading and the 777 freighter model is expected to address this problem just as easily as a retrofitted 747-400. Also the advent of newer more fuel efficient planes in the passenger sector will make some of the present planes obsolete and therefore fit for retrofitting into air cargo carriers. Also the merger of passenger airlines and lay offs due to difficult commercial and financial conditions is going to see a lot of airlines looking to air cargo business to stabilize their operations.

There is an expectation that growth in the air cargo business will come from conversion of passenger aircraft and only one third of the expansion would involve newer aircraft. This would mean that the business of retrofitting will be worth about $170 billion, whereas the new aircraft business for cargo planes would not be a small one, and definitely benefit companies like Boeing who have specialized aircraft in this segment. So the retrofitting business could see a lot of laid of workers in the aerospace industry getting their jobs back again, and even creating work for new entrants as part of the existing workforce retires and make way for fresh entrants. The present fleet of 1700 aircraft in the freight business would expand to about 3200 by the year 2025 and may need to be adjusted to the vagaries of normal economic cycles. The scope for the expanded business is great and could also immensely benefit companies like GE and others who make parts for aircraft.

There are companies like Air France who have already made their own predictions for increase in freight business and ordered 5 of the new Boeing 777 and also placed options for more aircraft to replace their existing fleet of 747-400 planes. Air Canada is another airline that is also moving into this space with orders for the Boeing 777 freighters. Boeing also expects that about a third of the freight business will be carried in such wide bodied aircraft by the year 2023. Their prediction may turn out not only to be true, but the figures may even show greater numbers. So the cities that house Boeing plants that build the Boeing 777 could largely benefit. The move by Boeing to aggressively shift to the demands made by the air cargo industry could only mean benefits for them. This indicates the way commercial aviation is repositioning itself in the present waning markets for air travel and looking at more long term trends that can help the industry to grow.

Source: The Boeing 777