Boeing Co. said Wednesday it will reduce output of its iconic
747-8 jetliner to one a month beginning in 2016, though it expects
a recovery in the air cargo market to drive future sales.
The plane maker was already trimming monthly production of the
jumbo, dropping to an average of 1.3 from 1.5 beginning in
September. With the rate cuts, Boeing is trying to extend the
production life of the 747 jumbo jet, which has been in service
since 1970.
The future of the 747, which comes in passenger and freighter
versions, had been viewed by analysts as one of the key early
challenges for incoming Chief Executive Dennis Muilenburg.
Through May, Boeing holds firm orders for just 32 747-8
aircraft, including 18 of the passenger planes and 14 dedicated
freighters.
Boeing recently signed a memorandum of understanding with
Russian cargo operator Volga-Dnepr Group for up to 20 747-8
freighters. In January, the U.S. Air Force said it has selected the
747-8 to serve as the replacement for the current Air Force One
used by the president.
The U.S. company this month cut its 20-year market forecast for
the largest jets, which include its 747 and the Airbus A380. The
U.S. plane maker envisions a market for just 540 ultra-large planes
between 2015 and 2034, down from the 620 in its previous
forecast.
Airlines and lessors have preferred large twin-engine jetliners
like Boeing's existing 777 and a heavily revamped version of the
plane due to arrive at the end of the decade, as well as the Airbus
Group SE A350.
The European plane maker is considering stretching the body of
its A380 and adding new engines to reignite demand for the jet,
which has been a heavy favorite of Dubai-based Emirates Airline but
is only a niche airplane with other carriers.
The Boeing rate cut was first reported by aerospace industry
magazine Aviation Week.
Write to Jon Ostrower at jon.ostrower@wsj.com
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