Air Freight News

Boeing supplier sees 787 rate accelerating after output restarts

Boeing Co. will most likely lift build rates for its 787 widebody beyond the currently targeted five a month some time in the future, according to the UK company that makes air ducts and structural parts for the jet.

Senior Plc Chief Executive Officer David Squires said the higher pace of output for the Dreamliner seems probable once handovers restart following a near-freeze for more than 18 months tied to production issues with the model.

“Boeing have guided publicly about five a month. My expectation is that they’ll move to a higher rate in due course,” Squire said in an interview Monday. He declined to comment on the time frame for any further ramp up.

Boeing CEO Dave Calhoun said last week that the planemaker’s 787 team was in the final stages of preparing to restart deliveries, after which it plans to gradually increase output to five jets a month. Dreamliner handovers were largely halted in late 2020 as the US firm grappled with structural glitches.

Output of the 787 was already on its way down before the coronavirus crisis hit long-haul demand, with Boeing planning a cut from 14 to 10 a month. At the start of Covid lockdowns and prior to the production issues it had said the rate would drop to seven a month by 2022.

Senior said it’s ready to boost output for both Boeing and Airbus SE after putting in additional capacity prior to the pandemic.

Squires said the UK firm doesn’t need further manufacturing facilities to cope with Airbus’s plan to make 75 A320neo-series narrow-body jets a month by 2025, and could do so by adding more machines at existing locations. Airbus said Thursday it was retaining that target while slowing the immediate A320 ramp up and cutting its 2022 delivery goal amid strain on suppliers.

Senior posted first-half results that beat analyst estimates and reinstated dividend payments.



© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

Apollo provides $700 million debtor-in-possession loan to SAS

Private equity firm Apollo Global Management has provided $700 million in financing to SAS AB as the Scandinavian airline tries to regain its financial health.

View Article
Air cargo tonnages and rates are both stabilizing
View Article
Startup Norse Air bets on London-NY boom surviving slowdown

Startup airline Norse Atlantic ASA, which begins UK-New York flights Friday, said it will rely on strict cost control and the strength of Europe-US travel to endure headwinds from spiraling…

View Article
Azul awards ULD management agreement to Unilode 
View Article
Atlas Air extends partnership with Qantas Freight

Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc., announced an agreement to extend its long-standing partnership with Qantas Freight, the leading air freight carrier in Australia. The…

View Article
U.S. cargo and passenger airlines add 6,775 jobs in June 2022 for new COVID-19 pandemic high
View Article