UPS gives Boeing's 747 jumbo jet a boost
Order doubles the plane maker's order book for 747-8, which has been a slow seller
United Parcel Service Inc. on Thursday said it was buying 14 Boeing Co. jumbo freighters, doubling the plane maker's order book for the jet even as it slows production.
The order and options to acquire 14 more are a huge boost for the 747-8 program as both the passenger and freighter versions have been slow sellers. Airlines have opted for smaller planes and the moribund air cargo market has led others to cancel planned purchases.
UPS UPS, -0.49% said it would take the first planes in 2017, with deliveries running through 2020.
The 14 jets have a list price of $5.3 billion, but UPS is expected to have secured steep discounts from Boeing BA, -1.53% and may be able to unload some of its older 747 cargo jets to Boeing as part of the deal, said one aircraft financier familiar with the negotiations.
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