godbless
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Boeing To Cut Production By Half

Wed Dec 05, 2001 9:00 pm

I just saw an article on http://www.n-tv.de (in German only) that Boeing wants to cut it's production from now 48 planes/month to 24 planes/month.
That would mean that for the first time Boeing would deliver less planes than Airbus. But the article also said that Boeing hopes that Airbus would also reduce the number of planes built since the demand for new planes is basically zero and there are enough planes available on the used-plane-market.

regards,
Max
http://www.IntAviation.de.vu
 
cfalk
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RE: Boeing To Cut Production By Half

Wed Dec 05, 2001 9:46 pm

Airbus only delivers on average 20-25 planes a month anyway, and with all the stuff going on, I doubt they can keep it up. Their 340-600 program is in a bit of rough water as well - one of the two launch customers (Swissair) has cancelled all orders and the other (Virgin) is talking about delaying their purchases.

Charles
The only thing you should feel when shooting a terrorist: Recoil.
 
airsicknessbag
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 12:14 am

... another early 340-600 customer, Lufthansa, however, seems to desperately need them: they are bringing back the originally retired 747-200 which the 340-600 are supposed to replace.

Daniel Smile
 
gerardo
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 1:10 am

Airbus had planned to increase the production by a remarkable amount already next year. This plan has been postponed for several years. So, this might be the adjustment for Airbus.

Gerardo
dominguez(dash)online(dot)ch ... Pushing the limits of my equipment
 
Rhino4ever
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 1:13 am

I would imagine Airbus is licking their chops over this one!!!
 
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apuneger
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 1:40 am

If Boeing cuts production by half, how much employees are going to be fired, at least temporarely?

Ivan
Ivan Coninx - Brussels Aviation Photography
 
LON-CHI
Posts: 204
Joined: Sun Apr 08, 2001 5:31 pm

RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 2:39 am

I would imagine Airbus is licking their chops over this one!!!

Airbus is in the same boat as Boeing (unless they plan on giving their planes away).
 
Flying-Tiger
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 2:49 am

Airbus has a different approach to the situation. They think it is cheaper to keep employees now - even with orders slowing - than to fire and rehire them when business picks up. In the past this has caused several problems with Boeing, last time they had fired 1000s of employees and when they had to be rehired during the boom they first had to train them and had serious quality issues which led to a shut-down of several assembly lines. This was extremly costly. I think Airbus wants to avoid this, especially the drain of skilled workers.

Regards
Flying-Tiger
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cfalk
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 2:59 am

Tiger,

It's not as simple as a matter of philosophy. Laying off workers in Europe, particularly Germany and France, is MUCH more difficult and more costly than in the U.S.

Charles
The only thing you should feel when shooting a terrorist: Recoil.
 
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boeingrulz
Posts: 521
Joined: Thu Sep 30, 1999 2:55 am

RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 4:03 am

Boeing has announced ~30,000 layoffs in total over the next year. Two rounds of layoff notices have been served with layoffs beginning just before christmas.

http://archives.seattletimes.nwsource.com/cgi-bin/texis/web/vortex/display?slug=boeing27&date=20011127&query=boeing+layoffs

 
elal106
Posts: 939
Joined: Mon Jan 10, 2000 1:50 pm

RE: Virgin Considering

Thu Dec 06, 2001 8:31 am

i hope Branson decides to order 777-300ers instead of the a340-600s...imagine business and first class on a virgin 777!!!

About airbus, they will be suffering as well as boeing through these tough times. They fear they might not be profitable in 2 years due to the large cancellation of orders from airlines. Luckily they are owned by the government.

CEO of boeing said in the LA times he predicted a 3-4 year recovery period with Boeing and Airbus as well as an average loss of 100 billion dollars.

 
CPDC10-30
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 8:32 am

I guess this is consistent with the plans to close Renton...
 
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boeingrulz
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RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 8:55 am

The picture on the Renton plant closing is a bit murky. Moving a production line is a long-term plan and is costly in the short-term.

The plans may likely be pushed off further into the future. It doesn't make financial sense to put money into moving a production line when money is tight.

Allan Mullaly mentioned that the Renton plant recently, stipulating that there are no plans to move it right now. http://archives.seattletimes.nwsource.com/cgi-bin/texis/web/vortex/display?slug=mulally03&date=20011103&query=boeing+layoffs+renton

Carolyn

 
Hoffa
Posts: 946
Joined: Wed Nov 21, 2001 8:04 am

RE: Boeing To Cut Production By Half

Thu Dec 06, 2001 8:58 am

I would think both Boeing and Airbus would face a common threat by the hundreds of like-new aircraft parked at Marana and Mohave, etc available for lease and sale.

What an ugly situation that Boeing's biggest competitor is Boeing itself!

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