EVERETT — The Boeing Co. will increase production of its new 787 jet this summer and consider ramping up the 777 next year as it aims to regain market supremacy.
“I want to re-establish market leadership,” Jim Albaugh, president of Boeing Commercial Airplanes, told investors Tuesday. “In 2011, we’ll deliver more airplanes than the competitor.”
In recent years, Boeing has fallen behind European rival Airbus in commercial jet deliveries. If the company plans to reclaim the top spot, Boeing will need to start delivering its delayed 787 Dreamliner later this year and smoothly ramp up production on that aircraft.
It will start by moving 787 production in Everett from two planes a month to two and a half in August. It also may need to increase production on its 777 and 737 jet programs — decisions Boeing will make shortly, Albaugh said.
787 update
After putting its first Dreamliner in the air in December, Boeing’s 787 flight test program has logged more than 250 hours of flight with three aircraft. A fourth 787 will fly next Sunday and another two will join the fleet by mid-year, Albaugh said. In order to deliver the 787 by year’s end, Boeing will need to have all six test planes flying roughly 90 hours a week, Albaugh said.
On Tuesday, Boeing flew a 787 Dreamliner to Victorville, Calif., where the jet will be stationed for “ground effects” testing. Pilots will fly the airplane very close to the runway to gather data regarding the aerodynamic effects and performance of the airplane during the takeoff and landing phases of flight. About 150 Boeing employees will be stationed there for three weeks.
To meet Boeing’s ultimate goal of producing 10 Dreamliners monthly by 2013, Boeing already is increasing production even as it works through flight testing.
777, 737 programs
Last year, Boeing decided to cut production rates for its 777 this June to deal with a market downturn but held its single-aisle 737 rates steady. The company expects airlines to be profitable again by 2012. It will decide in April whether to boost 777 production in Everett next year to meet the expected higher demand.
“We anticipate we’ll have a couple of orders on the 777 in the near term,” Albaugh said.
Boeing rival Airbus announced Tuesday that it will boost single-aisle A320 production rates to 36 aircraft monthly from 34 in December. Albaugh said Boeing will make a decision on 737 rates this year.
With competition increasing not only from Airbus but also from other countries, Boeing has tough choices to make in the long term on the 737 and 777. Both will need either to be fitted with more efficient engines or to be replaced completely.
“We need to decide what we’re going to do with both the 737 and 777 … both those airplanes are going to be under attack,” Albaugh said.
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