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.


 
 

 

Northrop Grumman signs long-term agreement with Raytheon

Northrop Grumman has entered a long-term agreement with Raytheon to supply its LN-200 Inertial Measurement Unit for Raytheon optical targeting systems. The long-term agreement with Raytheon’s Space and Airborne Systems business extends through 2018. The LN-200 provides camera stabilization on optical targeting systems that conduct long-range surveillance and target acquisition for various...
 
 
AAR-Textron

AAR awarded new contract from Bell Helicopter Textron to support T64 engines

AAR announced April 22 that Bell Helicopter Textron Inc. awarded its Defense Systems & Logistics business unit a contract providing warehouse and logistics services in support of upgrading T64 engines for the Bell V-280 Val...
 
 

Pratt & Whitney’s engine wins Gold Edison Award™

Pratt & Whitney’s PurePower® Geared Turbofan™ engine has been awarded Gold in the transportation- aviation category of the 2015 Edison Awards. Pratt & Whitney is a division of United Technologies Corp. “Our dedication to innovation and identifying ways to continuously improve is in our blood at Pratt & Whitney,” said Greg Gernhardt, president, Pratt &...
 

 

Boeing names Space Launch System VP

Boeing has named John Shannon to be vice president and program manager for the Space Launch System, which will provide NASA with heavy-lift capability to send people and cargo into deep space. Boeing is designing, developing, testing and manufacturing the core stages and avionics for SLS. Shannon succeeds Virginia “Ginger” Barnes, who is retiring. He...
 
 

Germany’s Jenoptik, Raytheon partner to produce new generators for global Patriot

Raytheon is partnering with the Jenoptik subsidiary Lechmotoren, a part of the Jenoptik Defense & Civil Systems division, to produce advanced power generators for the Patriot Air and Missile Defense system. Under terms of this new contract, Jenoptik will build power plants, power generators, test equipment and spares for one of Patriot’s global partners. Raytheon...
 
 

Boeing tops first quarter profit forecasts, airplane deliveries rise

Boeing delivered more commercial airliners in the first quarter, offsetting sluggish results in the defense side of its business and pushing its first-quarter earnings up 38 percent. The profit topped Wall Street expectations, but revenue was below forecasts, and production costs of the Boeing 787 jet continued to pile up. The shares fell about 4...
 




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>