|
747s cleared for takeoff
|
 |
November 25, 1997: 10:28 a.m. ET
Boeing says output of jumbos has resumed after clearing parts shortages
|
NEW YORK (CNNfn) - After taxiing around for 20 days, Boeing Co. cleared for takeoff production of its 747 aircraft after completing a plan to ease delays caused by strong orders from airlines.
The aerospace firm said Tuesday that full production of its 747s has begun. That production was stopped several weeks ago as the company had problems keeping up with unprecedented demand.
However, there may be some turbulence for Boeing in the months ahead, said Bob Dryden, executive vice president for Boeing's airplane production.
"We continue to track the situation daily, but our factories may not be back to where they should be until the second quarter of next year," he said.
Boeing also said it hopes to increase production of its best-selling next-generation 737 model to 14 per month from 7 per month currently.
Overall during the shutdown, the company said it reduced parts shortages from more than 500 to fewer than 100, and reduced the number of jobs behind schedule by 80 percent.
Other aircraft production lines also have benefited during the past few weeks, Boeing said.
The shutdown was costly for Boeing (BA), which incurred charges of $2.6 billion to cover manufacturing setbacks and contract penalties due to late deliveries.
Boeing has been a victim of its own success, winning contract after contract over the last year, straining its ability to keep up with demand.
The increased demand has even made Boeing turn for help to British Aerospace PLC, a member of Airbus Industrie, the European aerospace consortium that is one of Boeing's main competitors.
BAe said that it had signed a contract to build machined wing components used in building Boeing 737s. A BAe spokesman said, however, that Airbus Industrie approved the parts contract before it was signed.
|
|
|
|
|
 |
|
