The new freighters would be based in Zhengzhou, China, to serve a joint venture between Cargolux and Henan Civil Aviation Development & Investment, owner of 35% of Cargolux. Zhengzhou is home to the main Foxconn manufacturing plant. Foxconn, officially Hon Hai Precision Industry, assembles much of the world’s supply of iPhones from Apple Inc. (NASDAQ: AAPL).
Cargolux CEO Dirk Reich told Reuters earlier this week:
[I]n the last weeks before the weekend of the (iPhone 6s) introduction, we have seen big shipments from China to all over the world particularly the U.S. It looks like the sales are in the same range as they were last year, so it is an early sign of the high season for air freight starting.
Apple said on Monday that it had sold a record 13 million new model iPhones during the first weekend of availability.
The joint venture, which Reich calls “Cargolux China,” should have its plans in place by the end of this year and expects to begin service in 2017. He is not especially concerned by the slowdown in China’s economic growth:
I think the uncertainty in China is overvalued. If you go and look at the production facilities particularly in the hinterland and look at consumption, goods of Europe are now being consumed by hundreds of millions of people in the hinterland
A deal for the additional 747 freighters, if it comes, would help Boeing keep its 747 production line going for a while longer. The company reported unfilled orders for 29 of its biggest planes at the end of August, 16 commercial jets and 13 freighters. Boeing is cutting 747 production to one a month next year, so an order for five of the freighters is especially welcome.
ALSO READ: 5 High-Dividend Blue Chip Stocks on Sale After Market Sell-Off
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.