Production decisions

We announced adjustments today that will affect production plans on some of our programs. You can read the release here:

Boeing to Adjust 2010 Twin-Aisle Airplane Production Plan

Comments (5)

Norman (Long Beach, California, United States):

The 777 has sold very well so I don't think the reduction of manufacturing of the 777 is too bad, five a month is still strong, I am sure some machinist will be transferred to the 747-8 and the 767 line as the 747-8 begins production and the 767 enjoys a recent boost in orders.

Chris C (South Africa):

It’s absolutely paramount that Boeing adapts to this extremely poor world economy status in order to survive and remain a formidable, competitive company with market preferred products and services. It seems that Boeing is taking the right steps today in order to help its customers, shareholders and employees with the even more difficult times that are set to confront us for months to come before any noticeable upswing in the economies begin.

Whilst passenger traffic levels decline and air-freight plummets and drastic steps need to be taken now from all parties to ensure survivability, in the longer term, markets will recovery and then it’ll be imperative that the customers are equipped with the best possible airplanes. The 777F and 747-8F are phenomenal airplanes, and as highlighted here: these airplanes are well positioned to lap up the freight demand when the upswing begins. As hard as it sounds, one needs to remain positive about the 777F and 747-8F, even whilst their current markets enter freefall, as these products will be the key driving force behind the world’s economy recovery when it kicks in. Then we’ll all be saying, “man, if only we ordered five more 777Fs or 6 more 747-8Fs, and didn’t defer!” But we don’t know how things will pan out in the next few months, and if we’ll see a recovery before Q3 2010. So it’s hard to be optimistic...being optimistic in this economy is almost saying that you’re ‘uninformed’!

Boeing has excellent products in the place, with the 737NG, 777, 787 and 747-8 as well as Airbus with their A320 family, A330 and A350. These products will be the way of the future.

We’re in tough times, to put it mildly, and I think we all need to be thankful that we have jobs and are able to support our families. It’s getting hairy out there.

P.Sumantri (France):

Lessors and airlines have been waiting for this announcement since months.

If manufacturers are not disciplined enough, aircraft value may continue to decline rapidly. We all know that airlines and lessors make some money from aircraft trading. If aircraft value is too low they can't make the cash they need so much for their survival.

This production cut is a difficult decision but it is the right one for Boeing, airlines and lessors altogether.

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Paulo M (Johannesburg, RSA):

I don't think anyone ever imagined the 747 program making a loss. That's telling both of the engineering stretch at Boeing and market conditions - and market itself for this type of aircraft and this stage. That said, I do believe the 747 has a unique service to offer the market, and I look forward to black books in Seattle and Chicago - and stretched, loaded, swept-back wings in the skies. Cheers.

Paulo M (Johannesburg, RSA):

Chris C,

Those cargo figures in your link there are the kind that have real makoi shock value - and I don't think there are that much kind here in Johannesburg or anywhere else. Shocking. Thanks for breaking the figures down - pretty much explains what happened to the 27 orders for the cargo version of the Whalejet. Until such time that a competitor learns how to build a freighter that the market wants, Boeing remains King - because they actually do. But now, of course, Boeing needs to figure out how to better exploit, position and develop the passenger version.

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