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 May 27, 2015

News: U.S. Air Force certifies SpaceX for military launches - SpaceX has been certified for military space launch, the U.S. Air Force announced May 26. The long-awaited announcement is a game changer, with SpaceX becoming only the second provider cleared by the service to launch national security payloads into orbit.   Business: Northrop Grumman CEO issues...
 
 

New’s Briefs May 27, 2015

U.S. military begins search flights for stranded Rohingya The United States has begun military surveillance flights to help locate stranded Rohingya and Bangladeshi boat people in Southeast Asian seas. State Department spokesman Jeff Rathke said May 26 that U.S. Navy P8 aircraft flew over the weekend with Malaysian support. Rathke said the U.S. has offered...
 
 
nasa-commercial-crew

Commercial Crew milestones met; partners on track for 2017 missions

NASA has taken another step toward returning America’s ability to launch crew missions to the International Space Station from the United States in 2017. The Commercial Crew Program ordered its first crew rotation mission fro...
 

 
af-spacex

Air Force certifies SpaceX for national security space missions

Lt. Gen. Samuel Greaves, commander of the Air Force Space and Missile Systems Center and Air Force program executive officer for space, has announced the certification of Space Exploration Technologies Corporation’s Falco...
 
 

Northrop Grumman passes key design review for B-2 weapons management upgrade

Northrop Grumman has successfully demonstrated to the U.S. Air Force that its plans to upgrade key weapons management software for the B-2 stealth bomber are on track and ready to proceed to the next level of development. The company successfully completed the critical design review of the service’s Flexible Strike Phase 1 program on Feb...
 
 
boeing-space

Boeing awarded first-ever commercial human spaceflight mission

NASA issued a task order as part of Boeing’s $4.2 billion Commercial Crew Transportation Capability contract recently to include the company’s first-ever service flight to the International Space Station. The award ...
 




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>