737 to ramp up further

About a month ago we told you that we’ll be increasing our production rate on the Next-Generation 737.

As I mentioned here, we would keep looking at the need for further 737 rate increases as the economy recovers and customer demand evolves.

Turns out we do see a need for a 2nd rate increase - from last month’s announced ramp up to 34 airplanes per month, to a new rate of 35 per month (by early 2012).

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737 employees are known for their efficiency and ingenuity - for example, note the use of a modified “hay baler” to load seats in final assembly.

What’s happening is we’re seeing long-term growth in the market for 737s, as customers place new orders or exercise options.

The pressure is definitely there to raise our production to meet this demand - and as we go forward we’ll continue to keep our eye on the market to determine whether further rate increases are needed.

Comments (3)

P.Sumantri (France):

Well, well, well! I was wrong and by a large margin. I thought once that there would be a severe overcapacity out there.
But, errare humanum est (click).

Paulo M (Johannesburg, RSA):

Lot's of talk about widebodies taking over revenue streams at Boeing Commercial. This reasserts the 737 somewhat. Of course, a direct result of this is that the primary competitor doesn't get much of an advantage with its production rate - in terms of additional orders and revenue, as slots open up. Far reaching effects.

Norman (Long Beach, California, United States):

The 737 production rate increase is great news for the local economies at the production front and is a hopeful sign that the world and US economy is on it's way for a rebound. The moving production line which speeds up the manufacturing and reduces the cost of the 737 I think has been a catalyst for more orders.

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