Business

March 11, 2013

Boeing says strong demand pushing commercial production rates higher

Boeing said March 11 that strong demand for its commercial airplanes and a healthy backlog are behind the company’s decision to keep increasing production rates.

“The data tells us the market is strong and will continue to be strong. That’s why we’re confident as we raise our production rates,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “Supply and demand will continue to be in balance as we put more airplanes into the hands of our customers.”

Tinseth spoke at the International Society of Transport Aircraft Trading (ISTAT) Americas conference in Orlando. He said passenger traffic is growing faster than capacity. Utilization rates and airline load factors are at historic levels. And Tinseth said airlines continue to replace their older, less fuel-efficient airplanes.

“All of these factors play into our decision to ramp up production in a methodical, deliberate way,” said Tinseth. “We constantly pulse the market to make sure we’re exactly where we need to be.”

Boeing’s 737 program is currently in the process of increasing its production rate to 38 airplanes per month and will go to 42 per month in the first half of 2014. The 777 program just ramped up production to a record high 8.3 airplanes per month (100 per year) and the 787 program plans to increase its current 5 per month rate to 10 per month by the end of this year.

Tinseth also said industry data shows the economic life of airplanes continues to hold steady.

“We’ve done an exhaustive analysis of the data. Everything tells us that airplanes are long-lived assets and continue to be good investments.”

Tinseth pointed to new Boeing research indicating that, despite the use of various definitions of the subject, no fundamental changes have been observed in the economic life of aircraft.

 




All of this week's top headlines to your email every Friday.


 
 

 

Headlines March 30, 2015

News: Pentagon chief mulls easing military enlistment standards - Defense Secretary Ash Carter is considering easing some military enlistment standards as part of a broader set of initiatives to better attract and keep quality service members and civilians across the Defense Department.   Business: Lockheed pays $2 million to settle government overbilling charges - Lockheed Martin Corpor...
 
 

News Briefs March 30, 2015

Landing mishap for military chopper; two aboard unhurt Two Navy officers were unhurt after their helicopter rolled on its side while landing in the Florida Panhandle. The mishap happened the night of March 27 at a Navy landing site in Pensacola, Fla. The Pensacola News Journal reports a pilot instructor and a student were able...
 
 
Air Force photograph by TSgt. Matt Hecht

Laser-based aircraft countermeasure provides ‘unlimited rounds’ against MANPADS

Air Force photograph by TSgt. Matt Hecht A U.S. Army AH-64 Apache attack helicopter prepares to depart Bagram Air Field, Afghanistan, on Jan 7, 2012. The Apache conducts distributed operations, precision strikes against relocat...
 

 

Navy, Air Force advocate for modernizing combat aviation

Top Navy and Air Force officials today told the House Armed Services subcommittee on tactical air and land forces the president’s budget request for fiscal year 2016 will support modernizing combat aviation programs. Cavy Vice Adm. Paul A. Grosklags, principal military deputy to the assistant secretary of the Navy for research, development and acquisitions; Air...
 
 

Raytheon wins $46 million contract for South Korean Global Hawk ground stations

Raytheon has been awarded a contract valued at up to $45.7 million by Northrop Grumman Aerospace Systems for ground segments in support of four Global Hawk unmanned aircraft systems recently purchased by the Republic of Korea. Under this contract, Raytheon will deliver one building-based and one mobile ground segment to locations in South Korea. Work...
 
 
Air Force photograph by SrA. Victor J. Caputo

McConnell community marks B-29 rollout

Air Force photograph by SrA. Victor J. Caputo A B-29 Superfortress aircraft, named Doc after its nose art, sit on the flightline March 23, 2015, in Wichita, Kan. Doc will be one of two Superfortresses in the world capable of fl...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>