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Home / Business / Boeing said to aim to speed up the 737 jet production early in the summer

Boeing said to aim to speed up the 737 jet production early in the summer



  A model of a Boeing 737 aircraft is depicted in the Boeing Sheffield factory, the company's first production facility in Europe, in Sheffield, North England on October 25, 2018.

OLI SCARFF | AFP | Getty Images

A model of a Boeing 737 aircraft is depicted in the Boeing Sheffield factory, the spacecraft's first production facility in Europe, in Sheffield, North England on October 25, 2018.

Boeing Co pushes to speed up the collection of Its best-selling 737 jetliner in the early summer, two people familiar with the plan said on Monday, as it tries to keep pace with the fluctuating global demand and European rivalry.

Boeing aims to start collecting 57 single-beams per month beginning June 3, up from the current frequency of 52, one of the people said.

The goal is contingent on the world's largest planner to overcome persistent delays in engine suppliers and other issues that have hobbled the 737 factory to vary degrees since last year, although Boeing says it is making progress.

The extra five planes a month are the key to Boeing's efforts to increase profit margins on its best-selling jetliner, the company's biggest source of profit. The more aircraft Boeing makes a month, the less it usually pays the suppliers for the parts.

It may take some time for new jetliners, who have a $ 100 million list price, to work through final testing and delivery when an airline handles the bulk of the money for a flight it ordered.

Boeing has said it will increase production later this year, but has not provided details. A spokesman refused to give more details.

The European rival Airbus SE is on the brink of producing 60 aircraft per month by its best-selling single-time A320 family, a rate just as Boeings has given the long European summer vacation.

Last year, Boeing CEO Dennis Muilenburg said the company was still struggling for delays on engines delivered by CFM International, the United States and France, but had moved parts of the supply chain to higher interest rates.

CFM contributed to a major bottleneck in the Seattle area 737 factory last year.

"We're not going to finish the transition to 57 a month before we're very sure we're ready," Muilenburg said last week. [19659006] Spirit AeroSystems Holdings Inc, which accounts for about 70 percent of the 737 structure, and was also cited by Boeing as the cause of last year's delays, said on Friday that it has completed exercise races to support the highest rate of 57 fly by the month. 19659006] Boeing i s also working to hit a higher rate of 14,787 Dreamliners per month in the second quarter, the company said Wednesday, confirming a previous Reuters report.

The transition to 78 in 14 per month will be completed in the second quarter, Muilenburg said.


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