Boeing is optimistic about global demand for its aircraft, saying that strong orders and a healthy backlog are behind the company’s decision to keep increasing production rates.
Speaking at the International Society of Transport Aircraft Trading (ISTAT) Americas conference in Orlando, Florida, this week, Boeing’s Vice President of Marketing, Randy Tinseth, said that airlines are expected to continue placing orders for its aircraft, despite the uncertain global economic outlook.
“The data tells us the market is strong and will continue to be strong. That’s why we’re confident as we raise our production rates,” said Tinseth. “Supply and demand will continue to be in balance as we put more airplanes into the hands of our customers.”
Tinseth added that rising passenger traffic and higher fuel costs are encouraging both the expansion and renewal of airline fleets, with new fuel-efficient models becoming increasingly popular.
“All of these factors play into our decision to ramp up production in a methodical, deliberate way,” said Tinseth. “We constantly pulse the market to make sure we’re exactly where we need to be.”
Boeing’s 737 programme is currently in the process of increasing its production rate to 38 aircraft per month, and will rise to 42 per month in the first half of 2014. Production of the B777 programme was recently boosted to a record high 8.3 aircraft per month, or 100 per year, and the B787 programme is expected to double from five to 10 aircraft per month by the end of this year.
“We’ve done an exhaustive analysis of the data. Everything tells us that airplanes… continue to be good investments,” Tinseth added.