Sunday, June 7, 2015

Boeing confident in targets, suppliers as it increases output

Boeing Co. said it is increasingly confident it can deliver new jetliner models on time and on budget, and will not need to cut output as it transitions to the upgraded designs.

The world's largest planemaker also expects that its suppliers will keep up as it increases output, despite problems at some that have slowed aircraft deliveries.

"We've been very focused on making sure our suppliers have the capability and capacity to go to 12 a month," said Larry Loftis, general manager of the Boeing 787 program.

The company plans to boost 787 output to that level in 2016 from 10 a month currently.

The remarks by Boeing senior executives about the 737, 777 and 787 programs were made in a series of briefings ahead of the Paris Airshow that starts on June 15.

Investors are concerned production could falter as Boeing introduces new versions of all three aircraft while simultaneously boosting output of the 737 and 787 and holding 777 production steady.
 
European rival Airbus Group SE also faces challenges increasing rates and building new models.

To help meet its production target, Boeing is installing more robots in its factories, carefully managing suppliers and building new facilities.

On May 29, Boeing began building the first 737 MAX, a new version of its best-selling aircraft that promises to burn 14 percent less fuel that the current model.

The company is quickly erecting a massive building in Washington state to house autoclaves that will bake composite wings of its new 777X model, due in 2020.

Boeing expects to install the first autoclave on schedule in the third quarter, and to complete the building in May 2016.

Boeing also said it raised its forecast for passenger traffic and jetliner demand, and that it expects 160 million more passengers to fly this year than last year, creating demand for 900 additional aircraft, not counting replacements.

(Alwyn Scott - Reuters)

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