In May, Boeing cited continued strong demand for the Next-Generation 737 as reason to ramp up production from 31.5 to 34 aircraft a month and indicated plans to study further increases.
Today’s announcement acknowledges the anticipated long-term growth in the market and the continued pressure to raise aircraft output to match the expected market demand.
’Our customers continue to show their preference for the Next-Generation 737 by exercising order options, as well as by placing new orders,’ said Boeing’s chief executive officer, Jim Albaugh. ’We’ve managed our current backlog efficiently and increasing rate is the product of our comprehensive planning and preparation. We will continue to monitor demand as we go forward.’
Boeing and its suppliers will prepare for the rate increase over the next 18 months. The rate increase is not expected to have a material impact on the company’s 2010 financial results.
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