Cargo transportation leader intends to acquire 29 Boeing 777 Freighters valued at $9.8 billion
Company confirms order of five 747-8 Freighters valued at $2 billion
Services agreement reinforces commitment to increasing productivity, safety, environment and operational stability
Boeing (NYSE: BA), Volga-Dnepr Group and CargoLogicHolding today signed a package of agreements that will further optimize the cargo transportation leaders' airplane fleet and global operations. The deals, announced at the 2018 Farnborough International Airshow, include a letter of intent to acquire 29 Boeing 777 Freighters, confirmation of an order for five Boeing 747-8 Freighters, the purchase of a crew pairing solution, and an agreement to work together on future freighter projects.
"This is a very significant day in our company's history. With this package of agreements, we will grow our business with the unique and unmatched 747-8 Freighter and open new market opportunities with the 777 Freighter, the world's longest range twin-engine cargo jet," said Alexey Isaykin, President of Volga-Dnepr Group and Chairman of CargoLogicHolding. "And we will work with Boeing to develop new freighter solutions that will help us continue to serve the unique and fast-changing requirements of our global customers."
Volga-Dnepr Group is among the world's largest Boeing 747 Freighter operators. The Group, and its subsidiaries and strategic partners have leveraged the jet's unique cargo-loading and cargo-carrying capabilities to build an unmatched global network for transporting unique, oversize and heavy cargo. Volga-Dnepr said it wanted to add more 747-8 Freighters to its fleet and affirmed a commitment to purchasing five more of the jets valued at $2 billion in current list prices.
"We are true believers in the 747-8 Freighter, it is a very special airplane. We fly it every day and we understand why operators around the world want more of them," said Isaykin.
While the Group and its partners have largely built its business on very large four-engine freighters, it now plans to expand its future fleet options with a commitment for the twin-engine 777 Freighter.
CargoLogicHolding intends to order 29 Boeing 777 Freighters, valued at $9.8 billion according to list prices. The airplane's unmatched range and significant cargo capacity promises to open up significant network and growth opportunities.
"CargoLogicAir, part of CargoLogicHolding, started its business by flying 747 scheduled and charter flights to and from the UK. We are excited to extend the network using a range of Boeing family aircraft including Boeing 747-8F, 777F, 767F and 737-800BCF," added Mr Isaykin.
The package of agreements also includes a commitment for both companies to explore other freighter solutions, such as new production 767 Freighters or converted cargo jets such as the 737-800 Boeing Converted Freighter.
With the resurgence in the air freight market – demand grew nearly 10 percent last year – Boeing has seen a big spike in interest for cargo jets. Boeing has now captured more than 100 orders and commitments for production and converted freighters this year.
"We are extremely honored that Volga-Dnepr Group and CargoLogicHolding have once again placed their trust on Boeing's freighter family to carry their business into the future. We look forward to expanding our relationship with our great partners and delivering new freighters to them for many years to come," said Kevin McAllister, president and chief executive officer, Boeing Commercial Airplanes.
Volga-Dnepr Group also uses Boeing Global Services to improve its offering for its customers. Its airlines use offerings such as Fuel Dashboard, Electronic Charting, Airport Moving Map and other advanced services, many of which are powered by Boeing AnalytX.
As part of the agreements, Boeing Global Services will provide AirBridgeCargo – a Volga-Dnepr Group airline – with a Crew Pairing solution to support the planning and operation of the airline's 300 crew members. The program creates optimized work duties, improving crew efficiency and improving airline productivity.
"This service puts the most advanced data analytics capabilities at Volga-Dnepr's hands as they operate the most advanced freighters in the world. It's a prime example of how Boeing integrates services solutions with the platform to help customers work better, work faster and save on operating costs," said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company.