Business

October 21, 2013

Boeing reduces 747 production rate as demand lags

Boeing will slow down production of its double-decker 747 jumbo jet as demand continues to be weak.

Counting cancellations, Boeing has not booked any new orders this year for that plane.

Boeing said Oct. 18 that it will slow 747 production to 18 per year, or 1.5 per month. Boeing originally planned to build 24 per year, but slow sales had already prompted it to make plans to cut the rate to 21 per year.

The slowdown begins early next year, and Boeing said it will stay at that lower rate through 2015.

The slower rate “doesn’t change our confidence in the 747-8 or our commitment to the program,” said Eric Lindblad, Boeing’s vice president and general manager for the 747, in a prepared statement.

The 747 has been flying with airlines since 1970, and it was popular at first for its long range and large size. But the revamped 747-8 first delivered in 2011 has not been selling well. More than half of the orders have been for freighters, and even that market has been weak.

The 747-8 faces tough competition from the larger Airbus A380, which has been available longer. It also competes with Boeing’s smaller 777, which has been a best-seller.

Boeing has booked orders for a total of 107 of the jets, with 51 yet to be delivered – just over two years’ worth of planes at the original, faster rate.

The biggest buyer of the passenger version has been Lufthansa, with orders for 19, including nine that have been delivered. No U.S. airlines have bought it.

The 747′s list price of around $350 million makes it Boeing’s most expensive plane. That means that even if it doesn’t sell very many, it’s a big revenue generator.

Boeing said the slower rate would not have a significant financial impact.

Shares of Chicago-based Boeing Co. rose 31 cents to $122.60 in afternoon trading after rising to an all-time high of $122.86 earlier in the session.




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


 
 

 
LM-C5

Double Deuce

A U.S. Air Force crew ferried the 22nd C-5M Super Galaxy from the Lockheed Martin facilities in Marietta, Ga., Aug. 25. Aircraft 86-0011 was ferried by a crew led by Maj. Gen. Dwyer L. Dennis, Director, Global Reach Programs, O...
 
 
Northrop Grumman photograph

First ever RQ-4 Global Hawk hits 100th flight on NASA mission

Northrop Grumman photograph A historical look at the first Global Hawk (AV1) during its maiden flight over Edwards Air Force Base, Calif., on Feb. 28, 1998. AV1 has made history again with its 100th flight in support of NASA en...
 
 

Northrop Grumman’s CIRCM system completes U.S. Army flight testing

Northrop Grumman’s Common Infrared Countermeasures system recently completed another round of U.S. Army testing by demonstrating its capabilities on a UH-60M Black Hawk helicopter. The flight test was conducted at Redstone Arsenal in Huntsville, Ala., by the Redstone Test Center. The Northrop Grumman CIRCM system was subjected to rigorous conditions over a six-week period, after...
 

 

USSOCOM signs a five-year framework contract for the Carl-Gustaf weapon system

Defense and security company Saab has signed a new framework contract with the U.S. Special Operations Command for the company’s Carl-Gustaf man-portable weapon system (in the U.S. named MAAWS; Multi-role, Anti-armor Anti-Personnel Weapon System). The contract is a follow on agreement to a previous five-year contract for the 84mm recoilless rifle system. In connection with...
 
 

RQ-4 Global Hawk demonstrates expanded mission capabilities

With several test flights this summer, the U.S. Air Force RQ-4 Global Hawk Wide Area Surveillance Unmanned Aircraft System proved its ability to operate with an expanded variety of intelligence exploitation ground stations and collect mission data in more places. The RQ-4 Global Hawk UAS is built by Northrop Grumman and is equipped with a...
 
 
boeing-jordan

Boeing celebrates delivery of Royal Jordanian’s first 787 Dreamliner

  Boeing and Royal Jordanian Aug. 27 celebrated the delivery of the airline’s first 787 Dreamliner. The airplane will play a central role in the Amman-based airline’s strategic plan for fleet modernization. Roy...
 




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>