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Boeing to increase 737 output to 34 per month

Boeing will increase 737 output to 34 per month, responding to an increase in customer demand.

Starting in early 2012, Boeing's will build an additional 2.5 narrowbody aircraft per month at its Renton, Washington facility, up from current monthly output of 31.5.

Boeing holds more than 2,000 outstanding 737 orders in its backlog from more than 80 customers.

Airbus recently announced that it would increase A320 family production to 36 aircraft per month from 34 starting in December.





During the economic downturn, analysts and lessors alike, called for cuts in narrowbody production from both Boeing and Airbus, citing a fear of over supply and declining lease rates.

However, both airframers maintained they had managed backlogs in a way that allowed them to backfill deferrals and cancellations to avoid production cuts.

During market fluctuations, Boeing has traditionally chased the highs and lows of production with steep rate hikes and deep cuts, though this latest economic downturn appears to have the airframer bucking its own historical trend.

Additionally, Boeing says it "continues to study further potential 737 rate increases, given continued customer demand".

Boeing VP of marketing Randy Tinseth believes airlines will return to profitability in 2011, continuing to drive demand for the airframer's narrowbody aircraft.

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