Boeing Focuses On Early 737 MAX Delivery

Boeing said it is working to deliver the 737 MAX ahead of schedule next year, provided the company can complete testing on time and customers are ready to receive it.

"It's a little early to raise the victory flag at this point on early deliveries," Boeing's Greg Smith said. "But we are focused on that. And if we can do it, and our customers can accommodate it, we will."

Boeing completed the first flight of the 737 MAX last week, raising the prospect that the updated version of its best-selling plane could be ready for delivery to its first airline customer, Southwest Airlines, earlier than the target of the third quarter of 2017.

Boeing is on track to lift production of the 787 Dreamliner to 12 a month this year and to increase the output of the larger 787-9 towards 70 percent of the total, with the remaining 30 percent made up of smaller 787-8s, Smith said.

Smith said 2016 will be a "transition year" as Boeing delivers fewer 737 aircraft and cuts 747-8 production to six a year from 12 to account for flagging demand. Smith said Boeing will build up 737 MAX jets in inventory until the plane is certified in 2017.

It also will build up inventory of 767s for delivery in 2017. His remarks reiterated points he and chief executive Dennis Muilenburg made last week in announcing fourth-quarter earnings.

Smith also said that Boeing sees continuing strong demand for aircraft despite low fuel costs, falling prices for used aircraft and weakening global growth that have raised concerns among investors that the aircraft cycle is peaking.