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.


 
 

 
boeing-chinook

Boeing delivers first U.S. Army multiyear II configured Chinook

Boeing July 29 delivered the first multiyear II configured CH-47F Chinook helicopter to the U.S. Army one month ahead of schedule. The delivery was celebrated in a ceremony at the production facility in Ridley Township, Penn. â...
 
 
Army photograph by SSgt. Angela Stafford

Engineers developing safer, more accurate tracer round

Army photograph Tracer rounds enable the shooter to follow the projectile trajectory to make aiming corrections. However, the light emitted by these rounds also gives away the position of the shooter. Engineers at Picatinny Ars...
 
 

General Dynamics to continue work on U.S. Air Force GPS III program

General Dynamics Advanced Information Systems, a business unit of General Dynamics, has been awarded a $25.4 million full-production contract from Lockheed Martin to support the U.S. Air Force Global Positioning System (GPS) III Network Communications Element for space vehicles seven and eight. The Air Force’s next-generation GPS III satellites will improve position, navigation and timing...
 

 

Javelin joint venture demonstrates vehicle-mounted missile launch

The Raytheon and Lockheed Martin Javelin Joint Venture recently fired a Javelin missile from a remote weapon station integrated onto a wheeled vehicle at Redstone Arsenal in Huntsville, Ala. The test demonstrated Javelin’s vehicle-launch capability to an international customer that has expressed interest in purchasing vehicles integrated with Javelin. The Javelin missile launched successfully...
 
 

Royal Australian Air Force scores direct hit with JSOW C

The Royal Australian Air Force has successfully tested a Raytheon Joint Standoff Weapon C against a hardened wall target at the RAAF Woomera Test Range. Launched from an F/A-18F Super Hornet at an operationally representative stand-off range and altitude of 25,000 feet, the JSOW C scored a direct hit. The RAAF test marked the third...
 
 

Boeing to assemble 787-10 Dreamliner in South Carolina

Boeing announced July 30 that final assembly of the 787-10, the newest and longest member of the 787 Dreamliner family of airplanes, will take place exclusively in North Charleston, S.C. Boeing will continue to assemble both 787-8s and 787-9s in Everett, Wash., and North Charleston. Design of the 787-10 is underway in Everett, with final...
 




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>