Boeing (NYSE: BA) has announced it will respond to strong and growing customer demand for its next-generation 737 airplane by gradually increasing its production to 42 a month, or more than 500 a year, by 2014. The rate increase is not expected to have a material impact on 2011 financial results.
The 737 program currently produces 31.5 airplanes per month. Boeing expects to produce 35 per month in early 2012, 38 per month in the second quarter of 2013 and reach 42 per month in the first half of 2014. The Boeing 737 family is the best-selling airliner in history and the company reports a current backlog of over 2, 100 of its units.
Boeing said it will continue to innovate the airplane for strong performance and value.
“We have worked very closely with our supply chain and our world-class manufacturing team to ensure we can increase rate in an efficient and responsible fashion, ” said 737 Program Vice President and General Manager Beverly Wyse. “We believe that many of the capital investments and production system changes made for 38 airplanes per month will already position us to build 42. We are very well situated for this rate increase.”