On the cargo side, "Asia continues in its position as the manufacturing hub of the world and, as we get further and further into the recovery period, Asia will be one of the drivers," said Boeing spokesman Bob Saling. He added, "As we look ahead, air cargo out of Asia will be a leading indicator" of the recovery.
Saling said the 777 is poised to benefit on the passenger side as well as the cargo side. The airplane FedEx is taking Tuesday is the ninth 777 freighter Boeing has delivered. So far, Boeing has 71 orders for the aircraft, including 15 from FedEx, the only U.S. airline customer. (Some orders are from leasing and finance companies.)
FedEx's non-stop trans-Pacific flights are enabled by the airline's long range and the nature of the cargo, Saling said. Because overnight packages don't create as heavy a load as bulkier cargo, FedEx can get more nautical miles from the airplane -- 5,800 miles compared with a more standard 5,000 miles -- eliminating the need for a fuel stop in Anchorage, Alaska. That allows for a quicker flight. FedEx previously served the route with an MD11, which had to stop for fuel.
On the passenger side, American became the first carrier to say it has re-scheduled China service it was awarded in 2007, but then delayed. "Obviously China is a very large market, a growing market with a growing economy, and this flight (Chicago-Beijing) will complement our existing service (Chicago-Shanghai)," said Virash Vahidi, senior vice president of planning. "When it comes to network planning, there is a strategic value to make sure you have a large presence in the countries and cities most important to your corporate customers.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV