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.


 
 

 

Navy Awards General Dynamics contract for LCS planning yard services

The U.S. Navy awarded General Dynamics Bath Iron Works a $100 million contract to provide planning yard services for the Littoral Combat Ship program. General Dynamics Bath Iron Works is a business unit of General Dynamics. Bath Iron Works, as the LCS Planning Yard, will provide maintenance and modernization support for all Navy LCS 1...
 
 
boeing-boc

Boeing, BOC Aviation announce order for 82 airplanes

  Boeing announced Aug. 25 an order by BOC Aviation for 50 737 MAX 8s, 30 Next-Generation 737-800s and two 777-300ERs (Extended Range). The order, valued at $8.8 billion at list prices, is the largest in BOC Aviation’...
 
 

F-35 flight test program milestones maturing combat capabilities

The Lockheed Martin F-35 Joint Strike Fighter program continued a steady path of flight test milestones in August, including weapons separation, software compatibility and flight hours, all demonstrating program maturity. “The test milestones are a direct result of the detailed planning, coordination and execution between various government teams and the integrated test force,” said...
 

 
Boeing photograph

Boeing program completes critical design, safety reviews

Boeing photograph Boeing recently completed the Phase Two Spacecraft Safety Review of its Crew Space Transportation-100 spacecraft and the Critical Design Review of its integrated systems, meeting all of the companyís Commerci...
 
 
LM-C130

Keep on Rockin’: C-130J ferries to Little Rock AFB

  The 61st Airlift Squadron at Little Rock Air Force Base, Ark., received another Lockheed Martin C-130J Super Hercules airlifter Aug. 21.  Brig. Gen. Brian Robinson, vice commander, 618th Air and Space Operations Center ...
 
 

Air Force tests Raytheon’s upgraded High-Speed Anti-Radiation Missile

Raytheon Company and the U.S. Air Force successfully flight tested an upgraded High-Speed Anti-Radiation Missile. The HARM Control Section Modification is more precise and accurate, which reduces potential collateral damage. During this test mission, an F-16 aircraft fired an HCSM, AGM-88F, against an emitter located outside of a zone of exclusion, which contained a similar...
 




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>