Increasing Demand Results In Acceleration in Production of Boeing 747, 777
Amid the growing demand for Boeing, world’s second largest commercial plane maker, has decided to increase the production of 747 and 777.
This is a positive sign for the plane maker amid recession, which has registered 1.6 percent increase in its shares today when the market opened.
In a statement, the company said that it wanted to "support increasing customer demand in the recovering airplane market." As a result of the decision, the 777 program's rate will increase from five airplanes a month to seven.
Boeing Commercial Airplanes Chief Executive Jim Albaugh was quoted in the statement as saying, “Market improvement and our conservatively managed approach to production have put us in a position where we see it necessary to raise aircraft output.” Jim Albaugh.
Ever since the recession hit the global economy, the airline industry has been badly suffering, with a steep fall in travel demand. This had resulted in postponement of airplane orders.
The statement also said that the boost in 777 production will begin in mid-2011, not in 2012 as had been planned earlier, while that of 747 in mid-2012, not in mid-2013. The accelerated production will not have any significant impact on 2010 financial results, as Boeing gets the payment only at the time of delivery.
