Boeing 737 rate hike factors

Boeing 737 factory in Renton (WA). Boeing rendering.

Subscription Required Introduction Nov. 30, 2015, © Leeham Co.: As Boeing ponders whether to increase production rates of the 737 line beyond the previously announced 52/mo rate effective in 2018, there are other important considerations besides whether the market can sustain another rate increase and whether the supply chain can gear up to the higher rates. It is widely known that Boeing is considering rates as high as 63/mo, the maximum capacity at its Renton (WA) plant. Airbus has already announced it plans to go to rate 60/mo for the A320 family in 2019. But a higher rate is being explored, and a relationship to the future of the 747-8 is a factor. Summary
  • Market share protection, backlog clear considerations.
  • Termination of the 747-8 program, its effect on suppliers and a Boeing write down are factors.
  • Cash flow going into the 2020 decade is important.

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