Boeing expects 737 production to rise beyond forecasts
November 16, 2012 4:14 AM EST
The Chicago-based company also said it expected to see further increases in production rates for the single-aisle 737, its best-selling jet.
Boeing said it has decided on a "firm concept," finalizing some basic design parameters for the 737 MAX and expects it to use 13 percent less fuel, compared to the current 737s. The plane would include new LEAP-1B engines from CFM International, which combines resources from Snecma, a unit of the Safran Group of France, and General Electric Co
Honeywell was chosen to supply an electronic air-bleed system and Rockwell Collins will provide large-format panel displays for the flight deck of the new plane.
Boeing said the 737 MAX remains on track for first delivery in 2017.
Boeing is currently producing 35 737 jets a month. The company said it likely would increase its production rate beyond its current forecast, which calls for 38 a month in the second quarter of 2013, and 42 a month starting in the second quarter of 2014.
The company is currently building a third production line at its factory in Renton, Washington, to accommodate the 737 MAX, which will enter production in 2015.
"Eventually, we'll use the third line for future rate increases," Beverly Wyse, vice president and general manager of the 737 program, said on a conference call with reporters.
She said Boeing officials "expect to see significant growth" in orders for single-aisle planes. "We don't have any specific plans when that next rate increase will be, but we're pretty sure it's coming."
Boeing shares rose 0.2 percent to $71.42 in late-morning trade. (Reporting by Alwyn Scott; Editing by Theodore d'Afflisio and Jeffrey Benkoe)
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Typhoon Matmo Leaves 32k Customers w/o Electricity in Taiwan, Weakens After Landing in China
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales