Boeing is looking at improving its Everett-built 767 jet, exec says

There is still a market for Boeing’s 767, the company’s Chief Financial Officer Greg Smith said Wednesday at Jefferies Global Industrials Conference.

In recent years, commercial sales had largely fallen off for the airplane, which was Boeing’s first twin-engine, twin-aisle jetliner. The largest remaining demand appeared to be for military aerial refueling tankers based on the 767. However last month, FedEx ordered 50 767 freighters. The package shipping and delivery company got its first 767 in 2013. It is the biggest order in the 767 program’s history and seems to have breathed new life into the line, which is ramping up production next year from 1.5 to 2 airplanes a month.

“It’s a very capable, proven, efficient product,” Smith said at the conference. “And so, I think we’ll continue to see a healthy demand for that product line.”

“But, at the same time, we’re still looking for opportunities to how to make the airplane even more efficient,” he said.

The company is looking to improve 767 production with “some of the best practices off the 737 and the 777 as an example,” he said.

Boeing’s major focus now is on delivering on its huge backlog of airplane orders and cutting costs to improve returns, he said.

The company has moved through 18 rate increases since 2009, and has another five scheduled, Smith said. “So, this is about delivering efficiently, profitably on that backlog, and continuing to execute…”

Demand remains high for single-aisle airplanes. Boeing plans to increase 737 output to 52 a month by 2018. Airbus is also ramping up at a similar rate.

Even so, there is pressure from customers to push production rates higher still, he said. “And the real question is taking that demand and really understanding how sustainable that is over a period of time, what kind of investment would be needed.”

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

More in Herald Business Journal

Everett Community College's Dennis Skarr sits in front of a 15-foot interactive wall that can replicate a manufacturing company's assembly line, hardware, software and networks on Wednesday, Nov. 24, 2021 in Everett, Washington. A class taught by Skarr focuses on cyber threats against manufacturers, pipelines, water treatment systems and electrical grids.(Andy Bronson / The Herald)
At EvCC, ‘The Wall’ teaches students how to thwart cyber crime

The Everett college is first in the nation to have a tool that can model cyber attacks aimed at vital infrastructure.

Double Barrel owner Lionel Madriz places a wine sale sign outside of his business on Friday, Nov. 19, 2021 in Snohomish, Wa. (Olivia Vanni / The Herald)
Job-seekers today are choosy, forcing employers to adapt

If they even show up, prospective employees are calling the shots. First question: What’s the pay?

Prison and a $273K bill for Snohomish insurance agent’s fraud

Vicki Boser, 58, was sentenced Tuesday to two years in federal prison. She was also ordered to repay clients.

Carpenters from America and Switzerland build the first "modular home" made from cross-laminated timber, inside a warehouse on Marine View Drive on Tuesday, Nov. 30, 2021 in Everett, Washington.  (Andy Bronson / The Herald)
Affordable housing’s future? Innovative home built in Everett

Swiss and American carpenters built the nation’s first “modular home” made of cross-laminated timber.

The Lab@Everett director Diane Kamionka stands outside the Lab's new home at the Angel of the Winds Arena on Monday, Nov. 29, 2021 in Everett, Washington. When Everett Community College tore down the Broadway mall to make room for its new Cascade Resource Learning Center, The Lab@everett, a business accelerator, also succumbed to the bulldozer. However, the city of Everett found a new home for the TheLab, which serves entrepreneurs and startups: the Angel of the Winds Arena. (Andy Bronson / The Herald)
Everett business incubator finds a sporty new home

TheLab@everett, an innovation center for entrepreneurs, has relocated to Angel of the Winds Arena.

An illustration of the TerraPower Natrium nuclear-power plant planned for Kemmerer, Wyoming. (TerraPower) 20211201
TerraPower plans to build demo nuclear reactor in Wyoming

The firm, which operates a research facility in Everett, is developing an electricity-generating plant.

FAA Administrator Steve Dickson speaks to lawmakers as Michael Stumo, holding a photo of his daughter Samya Rose Stumo, and his wife Nadia Milleron, sit behind him during a Senate Committee on Commerce, Science, and Transportation hearing on the implementation of aviation safety reform at the US Capitol in Washington on Wednesday, Nov. 3, 2021. Samya Stumo was among those killed in a Boeing 737 Max 8 crash in 2019. (AP Photo/Amanda Andrade-Rhoades)
Democrats push FAA for action against certain Boeing 737 Max employees

Rep. Rick Larsen co-signed the letter stating concerns over the “absence of rigorous accountability.”

Local aero firms get $4.5 million from feds to protect jobs

Federal Aviation Manufacturing Jobs Protection Program grants were awarded to six Snohomish County employers.

FILE - In this June 12, 2017, file photo, a Boeing 787 airplane being built for Norwegian Air Shuttle is shown at Boeing Co.'s assembly facility, in Everett, Wash. Boeing is dealing with a new production problem involving its 787 jet, in which inspections have found flaws in the way that sections of the rear of the plane were joined together. Boeing said Tuesday, Sept. 8, 2020, it's not an immediate safety risk but could cause the planes to age prematurely. (AP Photo/Ted S. Warren, File)
FAA memo reveals more Boeing 787 manufacturing defects

The company said the problems do not present an immediate safety-of-flight issue.

Homes in The Point subdivision border the construction of the Go East Corp. landfill on Wednesday, Nov. 10, 2021 in Everett, Wa. (Olivia Vanni / The Herald)
Mudslide briefly stalls housing project at former Everett landfill

The slide buried two excavators in September. Work has resumed to make room for nearly 100 new houses.

Ameé Quiriconi, Snohomish author, podcaster and entrepreneur.  (Kevin Clark / The Herald)
Snohomish author’s handbook charts a course for female entrepreneurs

She’s invented sustainable concrete, run award-winning wedding venues and worked in business… Continue reading

A final environmental cleanup is set to begin next year at the ExxonMobil and ADC properties, neighboring the Port of Everett. Photo courtesy of the Washington State Department of Ecology.
Port of Everett to get $350K for its costs in soil clean-up

The end is finally in sight for a project to scrub petroleum from two waterfront parcels, owned by ExxonMobil and ADC.