Kevin O'Toole/LONDON
BOEING IS TO raise aircraft production rates towards the end of 1996 in a move, which the company says reflects the beginnings of an upswing in aircraft demand, as well as efforts to catch up from the ten-week strike.
Production is expected to recover to pre-strike levels during the first quarter of 1996, but Boeing faces a backlog of more than 50 aircraft delayed by the action.
The company says that it will now begin to raise production rates to help make up the shortfall over 1996. Output had been due to fall to a trough of only 210 aircraft in the year, but with the adjustments, Seattle now looks like producing closer to 250, provided that full production is restored quickly.
The most significant rate adjustment is for the 737. Boeing had envisaged reducing output from seven to five aircraft a month from April, as production of the existing models is wound down in favour of the new-generation series. Instead, Boeing will now raise monthly production to 8.5 aircraft in the fourth quarter.
Also in the final quarter, Boeing will raise 747 production from two to 3.5 a month and lift the 767 rate from 3.5 to four. Production rates for the 757 will still go down from four to three aircraft as planned, but the change will be delayed until September, rather than be implemented in June as originally announced.
Output of the 777 will continue to climb to 3.5 aircraft a month in the second half of the year, on the way to a steady production rate of five a month early in 1997.
"This is a positive sign to see the beginning of an upswing in production rates," says Ron Woodard, president of Boeing Commercial Airplane Group, adding that it reflects a gathering recovery among airline customers.
By mid-December, Boeing had a tally of 255 new orders for the year, worth almost $18 billion. That is more than double the 120 orders secured in 1994 and well ahead of Airbus and McDonnell Douglas.
Boeing says that discussions continue with customers over rescheduling deliveries hit by the strike, and promises to announce a full 1996 production forecast this month. Boeing adds that it will also then reveal "any impact" that the production adjustments may have on employment.
Source: Flight International
