(Bloomberg) -- Boeing (NYSE:BA) Co. won a $5.65 billion lifeline for its endangered 747 jumbo as United Parcel Service Inc (NYSE:UPS). ordered 14 more of the iconic jetliner.
UPS is exercising options that double a previous deal for the freighter version of the 747-8, the courier said Thursday. The company is also taking four Boeing 767 freighters as it rushes to keep up with growing demand and ramps up investment after the recent cut in U.S. corporate tax rates.
The 747 order means Boeing will continue producing its largest aircraft into the 2020s, more than half a century after its debut. The UPS transaction validates Boeing’s long-held hope that a rebound in the air-cargo market would spark new interest in the jumbo freighter. The hinged nose of the jet flips open so that very large items, like oil drilling equipment, can be loaded quickly.
At the end of 2017, Boeing had just 12 unfilled orders in its dwindling 747 backlog, 11 of them destined for UPS. The latest deal will provide more than two years of output at the production rate of six jets annually.
Airbus SE is moving to a similar rate for its A380 superjumbo after landing a lifesaving order from Emirates Airline last month. Demand for such four-engine aircraft has fallen as the planemakers created twin-engine models, such as the Boeing 777 and Airbus A350, which are able to fly similar numbers of people over long-distance routes.
The 747 freighter has a list price of $403.6 million, according to Boeing’s website, before the discounts that are customary for aircraft orders.