Aircraft
Russian Deal Helps Spark Another Boeing 737 Production Rate Increase
With demand for single-aisle aircraft showing no sign of abating, Boeing has once again announced an increase in its production rate for its 737 program, t
Boeing’s third 737 rate hike since May will see the assembly line in Renton, Wash., produce 38 airplanes per month by mid-2013.
Boeing’s third 737 rate hike since May will see the assembly line in Renton, Wash., produce 38 airplanes per month by mid-2013.

With demand for single-aisle aircraft showing no sign of abating, Boeing has once again announced an increase in its production rate for its 737 program, this time to 38 airplanes per month in the second quarter of 2013. The decision comes as Boeing prepares for a number of expected option conversions and closure of “current sales campaigns,” including an anticipated firm order for fifty 737s with Russia’s State Corporation Rostechnologii. The state-owned company’s supervisory board plans to review the so-called definitive agreement, which includes purchase rights for another 35 of the single-aisle workhorses, next month. Plans call for Rostechnologii to lease the airplanes to Aeroflot and six other domestic carriers chosen for consolidation under the auspices of the Russian flag carrier. As of September 14 Boeing had collected net firm orders for 250 Next Generation 737s this year alone. The backlog already stands at more than 2,000.

Boeing’s latest rate hike announcement follows the company’s June decision to raise 737 production rates in early 2012 from 34 to 35. Just a month earlier it announced plans to go from 31.5 to 34 by that time.