Boeing Lifts 737 Production Rate

September 16, 2010

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Boeing said on Thursday it will boost production of its best-selling 737 aircraft to 38 a month in the second quarter of 2013, the third rate increase for the popular airliner announced this year.

Boeing said in June that production of its next-generation narrow-body 737 would rise to 35 a month in early 2012. In May, the aircraft maker said it would raise output to 34 a month from 31.5.

"Increasing production is in response to customer demand for this airplane," Boeing Commercial Airplanes President Jim Albaugh said in a statement.

Boeing said the latest boost was not expected to have a material impact on 2010 financial results.

The company also said that improvements to the 737, a model that was introduced in 1997, would result in a 2 percent reduction in the plane's fuel consumption by early 2012.

Boeing and Airbus suffered a slump in orders in 2008 and 2009 amid the recession. Now, demand is resuming as air traffic trends recover.

(Reuters)