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 November 21, 2014

News: Dempsey lays groundwork for larger 2016 defense budget - The top U.S. military official on Wednesday made the case for growing the base defense budget significantly over the $535 billion spending cap imposed by Congress for fiscal 2015.   Business: Boeing can bill $61 million that Pentagon withheld for months - The Pentagon withheld $60.5 million...
 
 

News Briefs November 21, 2014

Obama aide: U.S. should look at Ukraine military aid A senior aide of President Barack Obama says he believes the U.S. should consider giving Ukraine lethal, defensive military assistance to get Russia to think twice about its destabilizing behavior. Tony Blinken, the deputy national security adviser, cites serious violations by Russia of agreements not to...
 
 
Air Force photograph by SrA. Divine Cox

Kunsan AB hosts Exercise Max Thunder 14-2

Air Force photograph by SrA. Divine Cox A South Korean air force F-15 Strike Eagle lands Nov. 17, 2014, during Max Thunder 14-2 at Kunsan Air Base, South Korea. U.S. Air Force, Army, Marine Corps and Navy personnel and aircraft...
 

 
LM-facility

Lockheed Martin opens Surface Navy Innovation Center

Lockheed Martin has opened the Surface Navy Innovation Center in Moorestown, N.J., to support the development of new technologies for the U.S. Navy. The SNIC is a research, development and demonstration facility that brings tog...
 
 
raytheon-test

Raytheon successfully demonstrates integrated electronic warfare capabilities

EL SEGUNDO, Calif. – Raytheon, in collaboration with the U.S. Navy, successfully demonstrated an end to end, first of its kind, integrated electronic attack system during flight tests at the Naval Air Weapons Station Chi...
 
 

Three bases identified as F-16 aggressor candidate bases

U.S. Air Force photo by Tech. Sgt. Joseph Swafford Jr. A U.S. Air Force F-16 Fighting Falcon fighter aircraft assigned to the 18th Aggressor Squadron lands at Eielson Air Force Base, Alaska, Oct. 6 during RED FLAG-Alaska 15-1. RF-A is a series of Pacific Air Forces commander-directed field training exercises for U.S. and partner nation...
 




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>