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Boeing cuts jet lines
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November 3, 1997: 11:54 a.m. ET
MD-80, MD-90 twinjets are casualties of aerospace streamlining strategy
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NEW YORK (CNNfn) - Aerospace giant Boeing Co. on Monday announced plans to streamline its jet-making strategy, including the elimination of a line of jets.
Boeing, the world's largest plane manufacturer, said it will produce its MD-80 and MD-90 lines of twinjets only until mid-1999, long enough to fill current orders. It will then end production of those jets.
"Our market assessment, including recent order history, indicates that there does not appear to be sufficient market demand to warrant extending production of those models," said Ron Woodward, president of Boeing's commercial airplane group.
The company also explained that it would continue to offer the MD-11 trijet in both freighter and passenger version but would focus on the better-selling freighter version.
Currently, Boeing is producing MD-11s at the rate of one per month.
Boeing has been a victim of its own success recently, announcing that mounting production problems, due to booming business, will delay some plane deliveries.
Those problems didn't prevent Boeing from reaching a $3 billion agreement last week to build 50 passenger jets for China's growing airline industry.
Meanwhile, Saudi Arabia is struggling to pay for a $7.5 billion order of 61 Boeing and McDonnell Douglas aircraft, the Financial Times reported Monday. Boeing refused to comment on the Saudi difficulties, but said that no planes have yet been delivered.
While Saudi Arabia has a reputation as a wealthy nation, the country's airline, Saudia, has struggled, partly because many of the country's 6,000 princes insist on traveling free of charge, said the Times.
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Boeing
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