Boeing to Increase 737 Production Rate
Previously announced increase to 35 per month to be extended to 38 per month in second quarter 2013
SEATTLE, Sept. 16 /PRNewswire/ -- Boeing (NYSE: BA) announced today its production rate for the Next-Generation 737 program will increase to 38 airplanes per month in the second quarter of 2013. This decision comes just months after announcing a rate increase on the company's best-selling commercial jetliner from 31.5 to 35 airplanes per month in early 2012.
"Increasing production is in response to customer demand for this airplane," said Boeing Commercial Airplanes President and CEO Jim Albaugh. "Airlines want this innovative airplane sooner to renew their fleets to serve their customers. We made this decision after careful evaluation by Boeing and our supplier partners."
Key factors to the rate decision include the company's current backlog of more than 2,000 Next-Generation 737s, current options that customers are expected to exercise and ongoing sales campaigns. The rate increase is not expected to have a material impact on 2010 financial results.
Next-Generation 737 customers have benefited from continuous innovation of the airplane since its introduction in 1997. The first five airlines will receive the new 737 Boeing Sky Interior by the end of this year. Customers will gain from a two percent reduction in the airplane's fuel consumption by early 2012, through a combination of airframe and engine improvements.
The 2010 Current Market Outlook, Boeing's long-term forecast of air traffic volumes and commercial airplane demand, projects a market of over 21,000 single-aisle airplanes over the next 20 years, accounting for an anticipated 69 percent of the airplanes delivered and an estimated 47 percent of the $3.6 trillion total market value.
Forward-Looking Statements
Certain statements in this report may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based upon assumptions about future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to future financial and operating performance, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission.
Contact:
Vicki Ray
737 Communications
+1 206-852-3319
Jim Proulx
Boeing Commercial Airplanes Media Relations
+1 206-850-2102
SOURCE Boeing