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Boeing to slash output
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October 17, 2001: 1:38 p.m. ET
Report says jetliner production to be cut by half as industry demand slows.
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NEW YORK (CNNmoney) - Boeing Co. plans to reduce commercial jetliner production by half due to an industry-wide slowdown in air travel and demand for planes following the Sept. 11 terrorist attacks, a published report said Wednesday.
Chicago-based Boeing's (BA: down $1.05 to $34.07, Research, Estimates) commercial aircraft unit, headquartered in Seattle, will cut production of several jetliner models to 23 a month from 43 by the middle of 2002, the Seattle Times reported, citing sources at two Boeing suppliers.
One week after the Sept. 11 airplane attacks, Boeing announced plans to slash staff in its commercial jet unit due to an expected sharp drop in orders.
Boeing will cut output at its two Seattle-area jet assembly plants, slashing the popular 737 narrowbody's production rate to 14 a month from 28, the Times reported, citing the suppliers.
Output of the mid-sized narrow-body 757 will fall to 1.5 units a month from four; the wide-body 777 will fall to three a month from five; the mid-sized wide-body 767 will fall to 2.5 a month from 3.5; and the venerable jumbo 747 will fall to two from 2.5, the Times reported.
A Boeing spokesman declined comment Wednesday, but said the company may update its fourth-quarter earnings guidance during a scheduled conference call with analysts following the release of third-quarter results Thursday.
The cuts come as the airline and travel industries struggle with sharply lower demand since terrorists hijacked four commercial jets last month and managed to crash three of them into the World Trade Center and the Pentagon, killing thousands.
The reductions will shrink Boeing's sizable output lead over rival Airbus, but Airbus has plans to reduce output as well.
At least one industry observer said the moves likely will position Boeing to recapture sales when the industry rebounds, but a recovery could be a year or more away, the paper said. 
from staff and wire reports
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