Boeing increases production rate on 737

Published 7:00 am Tuesday, June 15, 2010

The Boeing Co. plans to ramp up production on its 737 jet line in 2012, the company said today.

Boeing will increase its rate to 35 aircraft monthly, from 34 jets monthly. In May, Boeing announced it would up the rate from 31.5 jets monthly to 34.

“Our customers continue to show their preference for the Next-Generation 737 by exercising order options as well as by placing new orders,” said Jim Albaugh, president of Boeing Commercial Airplanes. “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’s supply base takes 18 months to ramp up production. The rate increase is not expected to have a material impact on 2010 financial results.