Boeing has seen a declining number of aircraft deferrals, providing a positive guidepost for riding out the recession and maintaining 737 production at current levels.
During the company's 27 January earnings call, CEO James McNerney says Boeing's commercial airplane unit saw a total of 271 aircraft deferrals in 2009. While 52% of the deferrals occurred during the second half of year, McNerney said that the request to delay deliveries dropped from 84 in the third quarter to 57 in the fourth quarter.
The company announced in 2009 that it plans to cut 777 production from seven to five per month starting in June of this year, and will delay planned increases on the 747 and 767 lines.
Boeing delivered 372 narrowbody 737 aircraft in 2009 while maintaining a production rate of 31 aircraft per month.
McNerney attributes the steady course to sound management of its backlog. "We believe the discipline we have exercised in managing both production rates and market opportunity has paid off. We foresee holding to our production plans without having to enter into bad business deals for the company," he said.
Boeing says it remains sold out on delivery slots in 2010 and over-booked in 2011.
McNerney says that in managing the backlog, customers have both moved up to fill available delivery slots, while "by and large" the deferring customers "have not come and re-ordered".
Boeing's contractual backlog stands at 3,376 aircraft valued at $250 billion.
Source: Air Transport Intelligence news
