Boeing has begun assembly on its 747-8 Intercontinental passenger, a direct competitor to Airbus A380, part of an order for its first customer of Germany's Deutsche Lufthansa AG of a contracted order of 20, and purchase rights for an additional 20.

Boeing vice president Mo Yahyavi, in charge of the 747 programme, said the production is a milestone in the third generation craft which provides 467 seats in its extended length of 5.6 metres over the 747-400 and is to be delivered after the anticipated freighter version due four quarter this year, holding 76 orders.

Its GEnx-2B engines and a new wing design provide airlines a quieter, more fuel-efficient airplane and a 30 per cent smaller noise footprint than its predecessor.

The 747-8 also provides nearly equivalent trip costs and 13 per cent lower seat-mile costs than the 747-400, plus 26 per cent greater cargo volume.

The 747-8, which includes the 747-8 Intercontinental and the 747-8 Freighter, was launched in November 2005. Boeing has 108 orders for the 747-8 and 32 for the 747-8 Intercontinental with first delivery late 2011.

Source: shipping online