Boeing Reduces Output in 2009
Boeing, the world’s largest aircraft maker, has announced it will reduce output this year as major airline companies withdrew its orders of passenger airplanes because of the alarming decline of travelers who prefer to stay at their homes to avoid spending their money on vacation.
Meanwhile, airlines said that business traveling has also declined for the past few months due to recession.
Boeing, the world’s largest aircraft maker, has announced it will reduce output this year as major airline companies withdrew its orders of passenger airplanes because of the alarming decline of travelers who prefer to stay at their homes to avoid spending their money on vacation trips.
On Thursday, the aircraft manufacturer said its quarterly revenue fell to an alarming rate, forcing its officials to reduce its production of passenger and cargo airplanes especially its popular model 777 which is widely-used by most international airline companies because of its fuel-efficient design.
In a statement, Boeing said it will produce five 777 planes per month from seven units as airline industry is fast deteriorating due to economic slowdown.
Boeing also said it will cut its output of 747 and 767 airplanes to avoid the pile up of these units in the company’s stock house.
Meanwhile, as the demand for airplanes declined, the company posted a 4.5 percent dropped in shares on Thursday.
In a statement, Boeing chief executive Scott Carson said the company is trying to restructure its business in order to survive in this tough economy.
Earlier report said that airline companies worldwide have suspended its orders from Boeing as the number of travelers—both vacationers and business tourists—has dramatically declined for the past few months as passengers are worrying about their dispensable incomes.
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