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Boeing to increase 737 production rate

Boeing (NYSE: BA) announced today its production rate for the Next-Generation 737 program will increase to 38 airplanes per month in the second quarter of 2013. This decision comes just months after announcing a rate increase on the company's best-selling commercial jetliner from 31.5 to 35 airplanes per month in early 2012.

"Increasing production is in response to customer demand for this airplane," said Boeing Commercial Airplanes President and CEO Jim Albaugh. "Airlines want this innovative airplane sooner to renew their fleets to serve their customers. We made this decision after careful evaluation by Boeing and our supplier partners."

Key factors to the rate decision include the company's current backlog of more than 2,000 Next-Generation 737s, current options that customers are expected to exercise and ongoing sales campaigns. The rate increase is not expected to have a material impact on 2010 financial results.

Next-Generation 737 customers have benefited from continuous innovation of the airplane since its introduction in 1997. The first five airlines will receive the new 737 Boeing Sky Interior by the end of this year. Customers will gain from a two percent reduction in the airplane's fuel consumption by early 2012, through a combination of airframe and engine improvements.

The 2010 Current Market Outlook, Boeing's long-term forecast of air traffic volumes and commercial airplane demand, projects a market of over 21,000 single-aisle airplanes over the next 20 years, accounting for an anticipated 69 percent of the airplanes delivered and an estimated 47 percent of the $3.6 trillion total market value.

Press release issued by Boeing Commercial Airplanes on September 17, 2010


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