Boeing Announces Slowdown of 747 Production, Rate Dropping to One Per Month

With slower orders rolling in from airlines, Boeing slows production of 747-8 to one per month by 2016.

As more airlines opt to purchase two-engine aircraft, Boeing announced they will slow down production of the original dual-deck aircraft: the Boeing 747-8. The Seattle-based manufacturer confirmed their plans to Seattle NBC affiliate KING-TV, outlining a gradual process that will reduce production by the first quarter of 2016.

Under the plan, Boeing will reduce the production rate to 1.3 747-8 aircraft by September 2015. The manufacturer will then further reduce production to one aircraft per month by March 2016. According to executives, the goal is to create a long-term future for the program, despite lower demand for the jumbo jet.

“That means 12 airplanes a year instead of 16,” Bruce Dickinson, vice president and general manager for the Boeing 747 program, told KING-TV. “But it’s a change that gets us into a nice balance of supply and demand.”

According to Boeing’s published figures, the aircraft company has only received four orders for the 747-8 this year, including three from Silk Way Airlines based in Azerbaijan. KING-TV reports the manufacturer has also received orders for 20 additional 747 freighter aircraft from Russia’s Volga-Dnepr Group.

By making the change, Boeing plans to keep the 747 program alive while capitalizing on the demand for long-haul two-engine aircraft. Dickinson told KING-TV that the aircraft manufacturer forecasted a demand for over 600 new freight aircraft, including the 747 and the 777.

In addition, Dickerson told KING-TV that the production slow will allow for innovation on new technologies, in order to make production more efficient. Although Boeing is slowing down production, the company does not anticipate any staff reductions. Instead, Boeing says those workers that were on the 747 program will be moved to production on different aircraft.

[Photo: Boeing]