Boeing launching cargo version of 777 after Air France order

SEATTLE – The Boeing Co. is launching a cargo version of its long-range, twin-engine 777 after receiving an order from Air France for five of the airplanes, the company announced Tuesday.

Air France also took options on three more 777 freighters, less than a week after receiving approval from the Air France-KLM board of directors. Deliveries are scheduled to begin in the fourth quarter of 2008, executives with the company and the airline said.

The orders would be worth about $1 billion at list prices, but airlines typically negotiate steep discounts, especially on multiple and launch orders.

Last month Air Canada ordered two 777 freighters, 16 passenger versions of the plane and 14 787s.

The 777 freighter is based on long-range 777-200LR passenger aircraft. Last fall when Boeing first offered the plane, it said it would be able to carry 222,000 pounds of cargo up to 6,400 miles.

On Tuesday, Boeing said it had shortened the freighter’s range to about 5,700 miles and boosted its payload to 229,000 pounds. Lars Andersen, 777 program manager, said airlines told Boeing it was more important to carry more cargo than fly farther.

Airbus SAS, Boeing’s chief rival, has said its new superjumbo A380 freighter will be able to carry 341,000 pounds of cargo about 6,400 miles when it enters service in 2008.

Separately Tuesday, Boeing Chairman Lew Platt told analysts at a conference in Seattle that the company is down to a short list of both internal and external candidates in its search for a successor to Harry Stonecipher as chief executive officer.

Boeing shares rose 72 cents to $62.36 in late trading on the New York Stock Exchange – up more than 40 percent from a year ago and near their 52-week high of $62.50.