Boeing will continue to ramp up production of its commercial aircraft, citing strong demand and a healthy backlog.
“The data tells us the market is strong and will continue to be strong. That’s why we’re confident as we raise our production rates,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “Supply and demand will continue to be in balance as we put more aircraft into the hands of our customers.”
Speaking at the International Society of Transport Aircraft Trading (ISTAT) Americas conference in Orlando, Tinseth said passenger traffic is growing faster than capacity while utilisation rates and airline load factors are at historic levels. Meanwhile, Tinseth said, airlines continue to replace their older, less fuel-efficient aircraft.
“All of these factors play into our decision to ramp up production in a methodical, deliberate way,” said Tinseth. “We constantly pulse the market to make sure we’re exactly where we need to be.”
Boeing is in the process of increasing 737 production to 38 aircraft per month, with plans to ramp up to 42 per month in the first half of 2014. The company’s 777 program recently increased production to a record level of 8.3 aircraft per month, or 100 per year. Boeing also plans to increase production of its troubled 787 from 5 to 10 per month by the end of the year.