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Cargolux celebrates 45 years of flying with a “You name it, we fly it” logo jet on newly-delivered Boeing 747-8R7F LX-VCM

Cargolux 747-800F LX-VCM (15-You name it)(Ldg) LUX (Cargolux)(LRW)

Cargolux Airlines International (Luxembourg) on September 28 took delivery of brand new Boeing 747-8R7F LX-VCM (msn 61169). The new delivery was flown to Luxembourg (above) and is in service between Luxembourg and Los Angeles via Prestwick.

The new Jumbo freighter is painted in a whimsical “You name it, we fly it” special livery created by Belgian cartoonist Philippe Cruyt. The logo jet is helping Cargolux celebrate 45 years of flying. The logo jet displays some of the odd things the airline has flown in its history.

The airline issued this statement and photos yesterday:

Cargolux 2015 logo

Cargolux Airlines, Europe’s largest all-cargo airline, celebrates its 45th anniversary with a special aircraft livery, created by Belgian cartoonist Philippe Cruyt, that was applied to its 13th 747-8 freighter delivered. The aircraft, LX-VCM, named ‘City of Redange-sur-Attert’, was handed over at Boeing’s Seattle plant on September 28 and arrived in Luxembourg on September 29 with a full load of cargo.

Cargolux LX-VCM 1 (Cargolux)(LR)

As an undisputed leader in air cargo, Cargolux offers an extensive product range, covering everything from every-day cargo to shipments that require detailed attention, special treatment and expert handling.

Cargolux LX-VCM 2 (Cargolux)(LR)

Backed by 45 years of experience, the highly specialized Cargolux teams can cater to the most demanding requirements customers may have.

Cargolux LX-VCM 3 (Cargolux)(LR)

This ability is aptly portrayed in the anniversary livery on LX‑VCM that depicts in a humorous way the many facets of air freight shipments, routinely handled by Cargolux every day.

Cargolux LX-VCM 4 (Cargolux)(LR)

The decal on Cargolux’s new freighter is the biggest decal that Boeing ever applied to an aircraft, it consists of 460 individual parts.

Cargolux LX-VCM 5 (Cargolux)(LR)

Phillippe Cruyt was born in Brussels, Belgium, in 1962. He has already illustrated a range of successful educational books on air freight and environmental topics, published by Cargolux in the early 2000s, as well as advertising and safety campaigns, calendars and posters for the airline.

Cargolux LX-VCM 6 (Cargolux)(LR)

In addition, he has illustrated a range of books as well as published his cartoons at various exhibitions throughout Europe.

Cargolux LX-VCM 7 (Cargolux)(LR)

Currently, Mr. Cruyt divides his professional time and energy between cartoon illustrations for children’s and educational books or designing communication messages with a touch of humor. When he is not drawing, Mr. Cruyt plays clarinet and tenor sax in his jazz group, The Creole Shakers Trio.

Cargolux LX-VCM 8 (Cargolux)(LR)

Cargolux LX-VCM 9 (Cargolux)(LR)

Cargolux LX-VCM 10 (Cargolux)(LR)

Cargolux LX-VCM 11 (Cargolux)(LR)

History

Over the last 45 years, Cargolux has grown to become Europe’s largest all-cargo airline with 828,658 ton of cargo flown in 2014 and a fleet of 25 747 freighters.

On March 4, 1970, Luxair, Loftleiðir, Salén and some private interests founded Cargolux and started operations from the newly established home base at Luxembourg airport with a handful of Canadair CL-44 freighters. The young carrier’s first flight on 10 March 1970 was routed Luxembourg – Stockholm – New York and carried a cargo of strawberries and iceberg lettuce.

The airline was created to operate all-cargo ad hoc and sub-charter flights and the first years of operation proved that there was a need for the type of service that Cargolux was offering to its customers.

Copyright Photo: Christian Volpati/AirlinersGallery.com. Douglas DC-8-63 (CF) LX-ACV (msn 45989) is seen at Paris (CDG).

The CL‑44s soon gave way to bigger DC-8 freighters (above) and, in later years, Cargolux introduced the wide-body Boeing 747 freighter into its fleet, amidst much skepticism in Luxembourg and within the industry. However, the success of the operation eventually proved critics wrong. In later years, Cargolux became the first operator and launch customer of the 747-400F and the 747-8F. With more than 85 offices in over 50 countries, Cargolux today flies to over 70 destinations worldwide and employs over 1,700 people.

Selected Milestones

1970: Cargolux Airlines International is founded by Luxair, Loftleiðir Icelandic, the Salén Shipping Group and private Luxembourg interests.

1974: The maintenance division of Loftleiðir Icelandic is integrated into Cargolux, whose staff increased from 80 to 180 over night.

1978: The final CL-44 is phased out. Cargolux now operates an all-jet fleet.

1979: Boeing delivers Cargolux’s first Boeing 747-200F, the second one arrives a year later.

1983: Cargolux’s CHAMP (Cargo Handling And Management Planning) computer system is introduced.

1984: The last DC-8 freighter is sold, while a third 747-200F is added to the fleet in 1986.

1988: Cargolux ranks among the 15 largest cargo carriers in the world, measured in freight tonne kilometers flown.

1990: Cargolux celebrates its 20th anniversary with an order for three new Boeing 747-400 freighters.

1993: With the delivery of the first two Boeing 747-400 freighters, Cargolux becomes the first airline in the world to operate this state-of-the-art aircraft.

1995: Cargolux celebrates its 25th anniversary. The fleet of modern 747-400 freighters is steadily expanded over the coming years; the 16th and last unit is handed over in 2008.

2005: Cargolux and Boeing announce the development of a new, advanced version of the 747 freighter, later to become the 747-8 series. Cargolux is a launch customer for this new 747 type with an initial order for 10 aircraft. The company later orders five more 747-8Fs.

2009: The Cargolux Maintenance Division moves into its new maintenance hangar that offers modern facilities and space for two 747/A380-sized aircraft. Cargolux enters into a strategic partnership in Italy to create Cargolux Italia for intercontinental all-cargo services from Milan’s Malpensa airport.

2011: Qatar Airways takes a 35% equity interest in Cargolux, but decided in November 2012 to sell its stake. The State of Luxembourg acquires these shares on an interim basis. Some six years after signing the initial order, Cargolux is taking delivery of its first two Boeing 747‑8 freighters on 19 and 21 September.

2014: Cargolux achieves a number of crucial goals, including the conclusion of a commercial cooperation agreement with HNCA, who acquire 35% of the Cargolux shares and the successful introduction of services to and from Cargolux’s new hub in China, Zhengzhou.

2015: Cargolux celebrates its 45th anniversary. The airline operates the largest fleet in its history and routinely records one of the highest daily aircraft utilization rates in the industry. Cargolux now operates seven weekly frequencies between Luxembourg and Zhengzhou and introduces its first dedicated transpacific service between Zhengzhou and Chicago.

The Cargolux Spirit

With the acceptance of 747-8F LX-VCM, Cargolux operates one of the youngest and most efficient freighter fleets in the industry.

“I’m proud to see this aircraft with a very special paint scheme join out fleet,” says Dirk Reich, Cargolux President & CEO. “The 747-8 freighter perfectly suits our worldwide network and its nose-loading and cargo-carrying abilities help us to maintain our leading position in the airfreight industry. Philippe Cruyt’s exceptional livery is a fitting addition to our 13th 747-8F and underlines not only the expertise and experience that Cargolux has gained in handling a wide variety of normal and special freight, but also celebrates the long and colorful history of our company. This aircraft is an ambassador for the passion and the spirit of Cargolux.”

All photos by Cargolux (except below).

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Bottom Copyright Photo: Joe G. Walker. LX-VCM arrives at Seattle/Tacoma to take a full load of cargo to Luxembourg.

Cargolux 747-800F LX-VCM (15-You name it)(Apr) SEA (JGW)(LRW)

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Boeing to build 747 fuselage panels at Macon, Georgia facility

Boeing (Chicago, Seattle and Charleston) has announced that 747 fuselage panels will be built at its Macon, Georgia facility beginning in 2018.

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Boeing will take over the work from Triumph Aerostructures – Vought Aircraft Division, a wholly owned subsidiary of Triumph Group, Inc., with the Macon site providing assembled fuselage panels to Boeing’s 747 final assembly line in Everett, Washington. Boeing and Triumph Aerostructures have worked together to ensure a smooth transition for the 747 supply chain.

Boeing and Triumph Aerostructures have worked together for many months to ensure a smooth transition for the 747 supply chain. As part of this detailed process, the Boeing team selected the Boeing Defense, Space & Security Macon facility for 747 fuselage panel work.

Defense work currently performed at the Macon site includes replacement center wing sections for the A-10 Thunderbolt II, as well as sub-assemblies for the CH-47 Chinook helicopter. Fuselage panels for the C-17 Globemaster transport airplane were also produced at the site until earlier this year.

Current defense work at the facility is scheduled to be complete in mid-2016, at which time Boeing will transition the site for Commercial Airplanes work. Facility staffing will be temporarily reduced during the transition. The site will ramp up to full production on 747 fuselage panels by mid-2018, at which point it will employ up to 200 people.

Macon will become the twelfth manufacturing site for the Boeing Commercial Airplanes Fabrication organization, which has operations in three countries.

Boeing will invest approximately $80 million in employee training, tooling and building modifications over the next three years.

The fuselage panel assembly transfer to the Macon site is the first of several new work packages for the 747 currently supplied by Triumph Aerostructures that Boeing will announce in the coming months.

Other 747 structures work now done by Triumph Aerostructures, including the empennage, floor beams and flight surfaces, is currently being competitively bid to selected suppliers. Boeing expects to have sourcing decisions for all the work completed this year.

At Macon, Boeing will equip the site with new tooling and equipment, which will occupy the entirety of the 220,000 square foot facility. A new advanced manufacturing production system will reduce the time to produce fuselage panels while also increasing quality and enhancing employee safety.

Copyright Photo: TMK Photography/AirlinersGallery.com. The 2015 version of Boeing’s support of the hometown NFL Seattle Seahawks. Boeing 747-83QF N841BA (msn 60119) lands back at Paine Field in the 12th Man livery.

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Lufthansa to take legal action against Vereinigung Cockpit’s Group Collective Labor Agreement Committee

Lufthansa (Frankfurt) has issued this statement concerning the on-going strikes by the VC pilots union:

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The response from the Vereinigung Cockpit pilots’ union to the numerous proposals and offers of talks submitted by Lufthansa has been further strike action, which today is affecting long-haul services and tomorrow will affect all the company’s short- and medium-haul routes, and thereby again subject its customers to unacceptable inconvenience.

For the past two years, right up until yesterday, Lufthansa has been approaching the Vereinigung Cockpit (VC) Group Collective Labor Agreement Committee with constructive proposals, offers and concessions. In doing so, the company has made concrete proposals on every open collective labor agreement issue, with a view to working together with the VC to jointly ensure the future viability and competitiveness of the company as a whole and of Lufthansa German Airlines in particular. In addition, Lufthansa has also demonstrated a willingness to discuss issues with the VC Group Collective Labor Agreement Committee that extend far beyond the latter’s responsibility and authority.

Since it is evidently impossible at present to engage in constructive negotiations, Lufthansa has now resolved that:

  1. The existing rights and benefits held by the cockpit personnel already at the company under their present Group Collective Labor Agreements (CLAs) will be frozen at their current levels until such time as any new Group CLA is concluded. In view of the company’s current inability to compete, however, no more new pilots will be employed under these Group CLA conditions at Lufthansa German Airlines, Lufthansa Cargo or Germanwings. As a result, the natural employee turnover within the present cockpit corps will lead to gradual reductions in these companies’ aircraft fleets. At the same time, every present cockpit crew member at these companies will retain their position.
  2. Any future discussions with the VC Group Collective Labor Agreement Committee will be limited to those issues within its responsibility and authority. These are in particular the Compensation CLA, the Umbrella CLA, the CLA on Transfers and Promotions, the CLA on Old Age Provisions, the CLA on Employee Representation and the CLA on Transitional Retirement Provisions.
  3. Lufthansa will carefully consider whether all the agreements between the company and the VC Group Collective Labor Agreement Committee on which notice has not yet been served can be meaningfully maintained.
  4. Lufthansa will submit a claim for compensatory damages against the Vereinigung Cockpit to the Frankfurt Labor Court. This claim will be based on the unlawfulness of the pilots’ strike of April 2014, when the Vereinigung Cockpit ordered strike action against Lufthansa Cargo even though the corresponding CLA was still in force. The damage caused to the Lufthansa Group as a result of the April 2014 strike totaled around EUR 60 million.
  5. Lufthansa is considering what possibilities (if any) the German Collective Bargaining Act (“Tarifeinheitsgesetz”) offers to prevent further harm to the company and its customers. In taking these actions Lufthansa is assuming responsibility for the future competitiveness and viability of the entire company, for its customers (who are currently being subjected to unacceptable inconvenience) and for its 120,000 employees from all personnel groups whose jobs are directly dependent on the company’s future.

“We would have liked to finally resume our CLA negotiations with the Vereinigung Cockpit instead of having to respond with this further escalation,” says Bettina Volkens, Chief Officer Corporate Human Resources & Legal Affairs at Deutsche Lufthansa AG. “I also appeal to our pilots to live up to their personal responsibilities. With the strike plans outlined by the VC for the time between now and the end of this year, the financial damage to our company would exceed 100,000 euros per pilot. It is high time we sat down and found a solution here.”

Deutsche Lufthansa AG

Lufthansa later issued this statement after the court declared the strikes as illegal:

Lufthansa welcomes the decision of the Hessen Labor Court in Frankfurt am Main to prohibit the strike action by the Vereinigung Cockpit (VC) pilots’ union with immediate effect.

The Court described the VC’s strike action as “evidently unlawful” in that, for the VC, the strike was clearly motivated not only by the official reason stated, i.e. pilots’ transitional retirement provisions, but also by the Wings Concept of the Lufthansa Group. This was not, the Court found, a valid strike objective. The Court further noted that the VC was not prepared to enter into overall mediation unless the Wings Concept was included therein.

The Court’s ruling does not permit recourse to any further legal channels. Lufthansa will offer its customers flight schedules that are virtually back to normal from tomorrow onwards, together with its usual reliable service. For planning certainty reasons, today’s special timetable will remain in effect.

Lufthansa remains willing to resume its negotiations on all open collective labor agreement items with the VC’s Group Collective Labor Agreement Committee at any time.

“Our goal is still to work with the VC to find a joint solution to all the open CLA issues through the negotiating process,” confirms Dr. Bettina Volkens, Chief Officer Corporate Human Resources of Deutsche Lufthansa AG. Deutsche Lufthansa AG

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 747-830 D-ABYT (msn 37844) in the 1968 retro livery approaches the runway at Dulles International Airport near Washington.

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Korean Air becomes the first airline to operate both versions of the Boeing 747-8

Korean Air (Seoul) and Boeing (Chicago, Seattle and Charleston) yesterday (August 25) marked the delivery of the airline’s first 747-8 Intercontinental. The new fuel-efficient jet is the first of 10 747-8 passenger airplanes the carrier has on order.

Top Copyright Photo: Royal S. King/AirlinersGallery.com. The pictured Boeing 747-8B5 HL7630 (msn 40905) was handed over to the carrier on August 25. The Jumbo is seen landing after a test flight at Paine Field near Everett, WA.

With this delivery, Korean Air becomes the first airline in the world to operate both the passenger and freighter versions of the 747-8. Korean Air currently operates seven 747-8 Freighters.

Korea’s flag carrier currently operates a fleet of 87 Boeing passenger airplanes that includes 737, 747 and 777s. The airline also operates an all-Boeing cargo fleet of 28 747-400, 747-8 and 777 Freighters.

With a range of 7,730 nautical miles (14,310 km), the 747-8 Intercontinental offers 16 percent savings in fuel consumption and emissions over its predecessor, the 747-400, while generating 30 percent less noise. The airplane also features an all-new, 787 Dreamliner-inspired interior that includes a new curved, upswept architecture giving passengers a greater feeling of space and comfort.

Korean Air’s jet is configured with 368 seats and features the brand new First Class Kosmo Suite 2.0, which include a sliding door and higher partitions to provide added privacy for passengers. The suites are also equipped with updated in-flight entertainment systems, with large 24-inch high-definition monitors and new handheld touch remotes.

Above Photo: Boeing.

The airline’s Business Class Prestige Suites (above) will feature staggered seating and privacy panels, along with 18-inch high definition touch screens.

Korean Air’s Aerospace Division is a key Boeing partner on both the 747-8 and 787 programs, supplying the distinctive raked wing-tips for each model. They are also one of two suppliers producing the new 737 MAX Advanced Technology (AT) Winglet.

Korean Air logo

Korean Air, with a fleet of 161 aircraft, is one of the world’s top 20 airlines, and operates more than 430 flights per day to 128 cities in 45 countries. It is a founding member of the SkyTeam alliance, which together with its 20 members, offers its 612 million annual passengers a worldwide system of more than 16,000 daily flights covering 1,052 destinations in 177 countries.

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Below Photo: Boeing. The staircase to the Upper Deck.

Korean Air to become a new passenger Boeing 747-8 Intercontinental operator

Korean Air (Seoul) is already a Boeing 747-8F Intercontinental freighter operator. The flag carrier will soon to be welcomed to the 747-8 Intercontinental passenger club with the pending delivery of its first copy (above). The company has 10 Super Jumbos on order and will replace their older Boeing 747-400s with new type. The older 747-400s will be phased out by 2017.

Korean Air logo

Like Lufthansa, Korean Air will soon operate both the Airbus A380 and the Boeing 747-800.

Copyright Photo: Joe G. Walker/AirlinersGallery.com. The first, the pictured Boeing 747-8B5 HL7630 (msn 40905), taxies into position on the runway at Paine Field near Everett for a test flight.

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The FAA issues an AD for possible Boeing 747-8 and 747-8F “divergent flutter during a high g-load maneuver in combination with certain system failures”

Federal Aviation Administration (FAA) (Washington) has issued this airworthiness directive (AD) for certain Boeing 747-8 and 747-8F series aircraft. The FAA estimates there are eight aircraft impacted on the U.S. registry.

According to Boeing, all of the costs of this AD may be covered under warranty, thereby reducing the cost impact on affected individuals.

Here is the statement:

FAA logo-1 (color)

We are adopting a new airworthiness directive (AD) for certain The Boeing Company Model 747-8 and 747-8F series airplanes. This AD was prompted by an analysis, which indicated that in a limited flight envelope with specific conditions, divergent flutter could occur during a high g-load maneuver in combination with certain system failures. This AD requires replacing the lateral control electronic (LCE) modules, replacing the inboard elevator power control packages (PCPs), installing new external compensators for the PCPs, and revising the maintenance or inspection program. We are issuing this AD to prevent certain system failures from resulting in divergent flutter, and subsequent loss of continued safe flight and landing.

Read the full AD: CLICK HERE

Copyright Photo: Nick Dean/AirlinersGallery.com.

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Boeing to cut the 747-8 production rate to only one aircraft per month

Boeing (Chicago, Seattle and Charleston) has announced it will cut the 747-8 Intercontinental production rate by 23 percent from 1.3 aircraft to only one aircraft starting in March 2016 according to Reuters quoting Boeing sources. The company is currently building 1.5 aircraft per month and this was planned to be reduced to 1.3 in September despite a recent order by the Volga-Dnepr Group.

Read the full report: CLICK HERE

Copyright Photo: Royal S. King/AirlinersGallery.com. Lufthansa has always been a keen supporter of the 747 and pushed Boeing for the updated 747-8 model. Lufthansa’s Boeing 747-830 D-ABYT (msn 37844) in the 1968 retro scheme lands at Paine Field near Everett.

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Volga-Dnepr Group signs MOU for 20 additional Boeing 747-800F freighters

Boeing (Chicago, Seattle and Charleston) and Volga-Dnepr Group (Moscow) (Volga-Dnepr Airlines, Atran Airlines and AirBridgeCargo Airlines), a world leader in transportation of unique, oversize and heavy cargo, have signed a Memorandum of Understanding (MOU) to further the Group’s fleet expansion with 20 additional 747-8 Freighters (above), valued at $7.4 billion at list prices.

The agreement also adds the Antonov-124-100 aircraft (below) to the long-term logistics support for Boeing and its partners.

According to Boeing:

Boeing and Volga Dnepr have a long history of successful partnership. The Group has already supported Boeing in a number of shipments. The unique technical abilities of the Antonov 124-100, along with Volga-Dnepr’s 25 years of global operations and experience gained in transportation of aviation equipment, will further serve Boeing’s logistics needs.

AirBridgeCargo logo-1

For Volga Dnepr Group, adding more 747-8 Freighters will allow development of the Group’s scheduled business, AirBridgeCargo Airlines (ABC), and keep the airline’s high growth rates. Volga-Dnepr Group was the first to order the Boeing 747-8 Freighter in Russia and took delivery of its first 747-8 Freighter in 2012. These additional 20 airplanes will be acquired through a mix of direct purchases and leasing over the next seven years.

The new 747-8 Freighter gives cargo operators the lowest operating costs and best economics of any large freighter airplane while providing enhanced environmental performance. It is optimized to provide greater revenue cargo-carrying capability than the 747-400, offering 16 percent more cargo volume while keeping its unique nose door.

Volga-Dnepr Group logo

Volga-Dnepr Group has represented the Russian airfreight industry in the international market since 1990. The Group, which includes three leading Russian all-cargo carriers – Volga-Dnepr Airlines, AirBridgeCargo Airlines and Atran Airlines – has a multinational team of 3,500 employees in fifteen countries.

Volga Dnepr currently operates 10 Antonov An-124-100s and five Ilyushin Il-76TD-90VDs, all modified under the Group special upgrade program and capable of flying to any point of the world. The fleet also includes 14 Boeing 747s – comprised of five Boeing 747-400ERFs (Extended Range Freighters), three Boeing 747-400 Freighters, six Boeing 747-8 Freighters – and three Boeing 737-400Fs.

Top Copyright Photo: Ton Jochems/AirlinersGallery.com. AirBridgeCargo Airlines-ABC Boeing 747-8HVF VQ-BRJ (msn 37670) taxies at Amsterdam.

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Bottom Copyright Photo: AirlinersGallery.com. Volga-Dnepr Airlines Antonov An-124-100 RA-82044 (msn 9773054155109) stops at Los Angeles International Airport.

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Air China brings its new Boeing 747-800 to San Francisco

Air China’s (Beijing) Boeing 747-800 Intercontinental makes its U.S. West Coast debut in San Francisco today (May 1), replacing the new-generation Boeing 777-300 ER used for the daily nonstop service between the City by the Bay and China’s capital, Beijing. A reception at the airport museum to celebrate the arrival of the inaugural flight of Air China’s Boeing 747-800 into San Francisco International Airport at 12:20 PM PDT today is hosted by the airline’s San Francisco team led by Ms. Litao Zhao, General Manager.

The Boeing 747-800 is the first and only aircraft in Air China’s fleet with a four-cabin configuration. It features 12 luxury suites in the Forbidden Pavilion (first class cabin), 54 fully-flat bed seats in the Capital Pavilion (business class), 66 premium economy seats and 233 in the economy cabin for a total of 365 seats.

The 180-degree fully-flat sleepers in the Capital Pavilion are split between the main deck and the entire upper deck, giving Air China’s guests an exclusive private space. Majority of the lie-flat bed seats are arranged in a staggered 2-2 configuration.

According to the airline, seats in premium economy and economy cabins offer more legroom for maximum comfort. An enhanced entertainment system offers a wide array of user-friendly features, including mobile app icons and a sliding touch control.

Premium economy seats offer eight inches more legroom (40 inches) than economy seats. In addition to priority boarding, premium economy passengers are offered a welcome drink, hot towels, slippers and many other inflight amenities for more convenience.

Air China’s Boeing 747-800 is also the first to sport the company’s new cabin interior which depicts three traditional Chinese cultural elements that represent the harmonious unity of heaven, earth and sky.

Flight CA 986 arrives in SFO at 12:20 PM. The return flight, flight CA 986 departs SFO at 2:50 PM (1450).

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[youtube https://www.youtube.com/watch?v=TORYX3E7_Lg&w=560&h=315%5D

Copyright Photo: Eric Dunetz/AirlinersGallery.com. Air China Boeing 747-89L B-2485 (msn 41191) departs from New York (JFK).

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Boeing reports first quarter GAAP net earnings of $1.3 billion

The Boeing Company (Chicago, Seattle and Charleston) reported first quarter revenue increased 8 percent to $22.1 billion on higher commercial deliveries. Core earnings per share (non-GAAP) increased 12 percent to $1.97, reflecting strong performance across the company, and GAAP earnings per share was $1.87. The Company reaffirmed its 2015 financial and deliveries guidance.

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Boeing 1Q15 Financial Results

Operating cash flow in the quarter was $0.1 billion, reflecting timing of receipts and expenditures, commercial airplane production rates and strong operating performance (Table 2). During the quarter, the company repurchased 17 million shares for $2.5 billion, leaving $9.5 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next two to three years. The company also paid $0.6 billion in dividends in the quarter, reflecting an approximately 25 percent increase in dividends per share compared to the same period of the prior year.

Total company backlog at quarter-end was $495 billion, down from $502 billion at the beginning of the year, and included net orders for the quarter of $15 billion.

Commercial Airplanes Deliveries:

Boeing 1Q Deliveries

Commercial Airplanes first-quarter revenue increased 21 percent to $15.4 billion on higher delivery volume and mix (Table 4). First-quarter operating margin was 10.5 percent, reflecting the dilutive impact of higher 787 deliveries.

During the quarter, Commercial Airplanes captured orders for 52 737 MAX airplanes. The 737 program has won over 2,700 firm orders for the 737 MAX since launch. Also during the quarter, the company opened a new Propulsion Systems facility at Boeing South Carolina that will initially support the 737 MAX and 777X, delivered the first Boeing South Carolina-built 787-9 Dreamliner and received 330-minute ETOPS certification on the 747-8 Intercontinental.

Commercial Airplanes booked 110 net orders during the quarter. Backlog remains strong with over 5,700 airplanes valued at $435 billion.

Boeing Military Aircraft (BMA) first-quarter revenue was $2.7 billion, reflecting planned timing of deliveries and mix; operating margin was 9.5 percent. During the quarter, BMA was awarded contracts for 43 Apache helicopters.

Network & Space Systems (N&SS) first-quarter revenue was $1.7 billion, reflecting lower satellites and missile defense system program volume partially offset by higher volume on the Commercial Crew program. Operating margin increased to 9.6 percent on strong performance related to our United Launch Alliance joint venture. During the quarter, the first two all-electric Boeing 702SP satellites were launched on a single rocket.

Global Services & Support (GS&S) first-quarter revenue was $2.2 billion, reflecting slightly lower volume in integrated logistics. Operating margin increased to 14.1 percent on strong operating performance and program mix. During the quarter, GS&S was awarded a combat logistics support agreement with the U.S. Defense Logistics Agency.

Top Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8JK Intercontinental N6067E (msn 38636) taxies at Paine Field near Everett. How long will Boeing continue to build the iconic Boeing 747? Relive the past with our Boeing 747 slide shows below.

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