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Sun, Mar 21, 2010

Boeing Says It Will Ramp Up Production To Meet Customer Demand

Expects To Build More 747s, 777s

Boeing said Friday that it will accelerate planned rate increases on both the 777 and 747 programs. The accelerated rate increases will support increasing customer demand in the recovering airplane market.

B777

"Our customers recognize the great capability and value of the 777 and 747-8," said Boeing Commercial Airplanes President and CEO Jim Albaugh. "Market improvement and our conservatively managed approach to production have put us in a position where we see it necessary to raise aircraft output. Increasing our rate is the right thing to do to support our customers."

The company will accelerate the 777 program's rate increase to seven airplanes per month (from five per month) by approximately six months, from early 2012 to mid-2011. The 747 program's planned production rate increase to two airplanes per month (from 1.5 per month) will move from mid-2013 to mid-2012. Suppliers for both the 777 and 747 will be prepared to support the accelerated rate increases.

B747

"We see 2010 as the year of overall economic recovery within the industry and 2011 a year where airlines return to profitability," said Randy Tinseth, vice president of Marketing for Boeing Commercial Airplanes. "As a result, we anticipate an increase in demand for airplanes in 2012 and beyond."

The current production rate decisions are not expected to have a material impact on 2010 financial results. The company will provide a complete guidance update when it releases first-quarter financial results.

FMI: www.boeing.com

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Boeing said Friday that it will accelerate planned rate increases on both the 777 and 747 programs. The accelerated rate increases will support increasing customer demand in the recovering airplane market.

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