Production rate increase

As you may have heard today, we’ve made a decision to accelerate our planned production rate increases on the 777 and 747 programs.

It’s a move we’re making in order to support increased customer demand as the airplane market recovers.

image/photo

The 777 production line will increase output to 7 airplanes per month - sooner than planned - in 2011 instead of 2012.

The plan is to move up (by about 6 months) the 777 program’s rate increase - to 7 airplanes per month (from 5 per month). This increase would take place in mid 2011 instead of the planned early 2012.

For the 747 program’s production rate we plan to accelerate (by about a year) our increase to 2 airplanes per month (from 1.5 per month). The plan is to make this change in mid 2012, rather than the planned mid 2013.

What’s behind these changes is similar to what I’ve been saying for a while.

We see 2010 as the year of overall economic recovery within the industry - and 2011 as a year where airlines return to profitability. As a result, we anticipate an increase in demand for airplanes in 2012 and beyond.

Comments (3)

Norman (Long Beach, California, United States):

Though some in the aviation blogosphere call the 777 old and passé (some born after the 777s first flight or entry into service, so maybe understandable) it is still useful and fills it's niche very well, as for the 747, (initial flight made ten years before I was born and service entry nine years) I still think especially with the 747-8 that the 747 series is not old and passé and the customers for these (old fogies) have spoken and they want more these very up to date airliners.

Paulo M (Johannesburg, RSA):

Good to see positive signs emerge. Good luck with the rate increases.

Believe I can see two 777-300ER's for Virgin Australia - some of these will eventually fly to South Africa, as Virgin Australia begins services here soon.

Joe Urli (Brisbane, Australia):

Great to see the demand increasing positively in the Asia Pacific region for such a superb product. ETOPs ready with all the options (electronic flight bag etc.)
Through Lean production disciplines the on-time delivery rates can be repeatable & predictable.

Pleased to see the business adapting to market requirements and having teams of great people delivering 777 aircraft to global customers.

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