As Boeing Commercial Airplanes starts increasing production for the first time in nearly a decade, people inside the company are looking over their shoulders at the traumatic memories of 1997.
That was a year that should have been a bonanza for Boeing, with one of its largest order books of aircraft in its history. Instead, the year turned into a debacle, as the company ran into shortages of critical parts, had to halt its 737 and 747 lines for weeks, and took more than $2 billion in charges to cover the added costs.
It should be noted that Boeing is gearing up for 395 planes not the 527 a year they were doing pre-9/11. Still good news for the aviation industry. Economies of scale improve the larger the scale, and this should make Boeing more competitive. It also is going to be a test for scaling up the 787 production line.