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.


 
 

 

Headlines July 25, 2014

News: VA reform bills stalled by partisan bickering - Plans for a comprehensive Veterans Affairs Department reform bill that appeared all but finished a month ago devolved into partisan bickering and funding fights July 24, casting doubt on the future of a deal.   Business: Airbus, Boeing, Lockheed announce bids on Danish fighter competition; Saab withdraws -...
 
 

News Briefs July 25, 2014

Marines investigate corporal who vanished in Iraq U.S. Marine Corp officers are launching a formal investigation into whether a Lebanese-American Marine deserted his unit in Iraq or later after returning to the United States. A spokesman for the 2nd Marine Expeditionary Force at Camp Lejeune said July 24 that Cpl. Wassef Ali Hassoun is being...
 
 
Air Force photograph by A1C Erin OíShea

U.S. Forces display military might at Farnborough

Air Force photograph by A1C Erin O’Shea Capt. Tom Meyers discusses the F-15E Strike Eagle’s capabilities with spectators July 17, 2014, at the Farnborough International Airshow in England. Public access was granted ...
 

 
raptors4

Raptors, Falcons fuel up in desert skies

Three U.S. Air Force F-22 Raptors assigned to the 325th Fighter Wing, Tyndall Air Force Base, Fla., fly alongside a KC-135 Stratotanker assigned to the 93rd Air Refueling Squadron, Fairchild AFB, Wash., during Red Flag 14-3, Ju...
 
 
lm-kmax

Lockheed Martin’s unmanned cargo helicopter team returns from deployment

After lifting more than 4.5 million pounds of cargo and conducting thousands of delivery missions for the U.S. Marine Corps, the Lockheed Martin and Kaman Aerospace Corporation K-MAX cargo unmanned aircraft system has returned ...
 
 
Air Force photograph by A1C Thomas Spangler

Sun sets on Red Flag 14-3

Air Force photograph by A1C Thomas Spangler The sun sets behind a row of F-16 Fighting Falcons during Red Flag 14-3, July 16, 2014, at Nellis Air Force Base, Nev. Red Flag provides a series of intense air-to-air combat scenario...
 




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>