Boeing’s Albaugh upbeat on 787 production, 737 MAX orders

  • Michelle Dunlop Herald Writer
  • Wednesday, November 30, 2011 6:16am
  • Business

The Boeing Co. expects to announce in the near future more commitments for its re-engined 737 MAX jet, a company executive said Wednesday.

Boeing’s Jim Albaugh was upbeat in his predictions for the company’s commercial airplanes division while speaking at an aerospace conference in New York on Wednesday. Albaugh’s remarks were webcast.

The company already has 700 order commitments from nine customers for its refreshed 737, Albaugh said. The jet maker has “additional commitments that you’re going to hear very soon.” He also expects Boeing to begin converting those tentative requests into firm orders shortly.

Albaugh re-iterated Boeing’s plan to reach a production rate of 10 aircraft monthly by 2013 on its popular 787 program. Boeing is working at a rate of 2.5 787s monthly with plans to increase by one aircraft monthly by early spring, he said. By the end of 2012, Boeing plans to produce five 787s monthly.

That doesn’t include the number of 787s Boeing build at its North Charleston facility in South Carolina. Boeing opened its second Dreamliner final assembly factory there earlier this year. Albaugh is pleased with the progress at the company’s North Charleston site.

“They were scheduled to deliver the first airplane out of there in June (2012) … I wouldn’t be surprised if they deliver it earlier,” he said.

Boeing delivered its first 787 jet to Japan’s All Nippon Airways in September. The company has more than 800 orders for its fuel-efficient, mostly composite jet.

After struggling with the 787’s global supply chain early on, Boeing is closely monitoring its partners to ensure they can handle production increases, Albaugh said.

“We are drilling down into every work cell to make sure they’re ready,” he said.

Boeing is still working to get Federal Aviation Administration approval for its 787s powered with General Electric engines. The jet maker received certification on 787s powered by Rolls-Royce engines this summer.

“We’ll be delivering to (Japan Airlines) the first GE-engine plane sometime after the first of the year,” Albaugh said.

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