End of an Era: Is Boeing 777 Killing 747 Jumbo Jet?

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Oct. 11 (Bloomberg) -- Bloomberg Industries' George Ferguson reports on the possible retirement of the 747 Jumbo Jet. He speaks with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Remember my first trip in a 747. what is good enough to replace it?

The world has changed since that plan was developed in the 60s and we are doing more point- to-point flying and that will be the end of the 747 because it's such a big people carrier and good for very large markets and big cities.

Boeing has been building these long-range airplanes to carry 250-400 people.

With only two engines which are much more efficient and those are really being built for the world of point-to-point travel.

What's a good example of what the 747 was built to do and the kind of route it was built to fly?

London to new york, new york to hong kong, places like that where you have large concentrations of people.

We had the 777 introduced in the 90s and the 787 just introduced.

These are large planes.

They can fly from cincinnati to beijing.

In cincinnati, you don't want to sell 450 tickets to beijing for a flight.

You'll end up having to discount tickets to make that route work.

You buy a 787 or a 777. why should we care about a plan that was developed decades ago?

It's an iconic airplane.

I will miss that look in the skyline.

The world moves on but that problem is there is only 50 orders at boeing for the 747 and almost 900 for the 787. does the same scenario applied to the airbus 380, the biggest commercial aircraft ever to fly, and it has not been selling particularly well?

Will airbus have to face the same difficult decision?

It took billions to develop that.

We think the 787 will probably be $10 billion.

There is a debate as to who gets subsidized in this commercial aircraft business.

Airbus took loans from the governments in europe to build and develop the a-380 two payback as they deliver.

They have only sold less than 300. there are not a lot of city pairs that can take that huge capacity on a regular basis without ruining fares.

What does it say about the demand from the airlines that lufthansa has $11 billion worth of orders from boeing.? is this a positive?

These airplanes are very expensive.

We are talking $200 million or so for the wide-body airplanes.

Lufthansa was a big 747 customer.

Even more interesting was that it has orders on the books for 747 but they are moving toward the new 777. what will compete with the new 777? will it be the airbus?

What's going on here is airbus is bringing the a-380 oput because the777 has been so successful.

Airbus has to refresh that airplanes of the battle is for these big to engine airplanes which means the four engine ones are going the way of the commodore 64. may the commodore 128.

This text has been automatically generated. It may not be 100% accurate.

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