Albaugh: No rate cuts for Renton
Airlines aren’t announcing orders at this year’s Dubai Air Show, taking some of the luster off what has become a major industry event.
But new Boeing Commercial Airplanes chief Jim Albaugh did have one piece of important news for District 751 Members — Boeing plans to continue producing 737s at the current record pace.
“We don’t anticipate that we are going to be down from the 31 (per month) we are at today,” he told Reuters. That should quash some rumors that Boeing was planning single-aisle rates cuts in the new year.
Overall, Boeing plans to produce and deliver about as many jets in 2010 as it will this year, Albaugh said. (That’s between 480 and 485.)
Otherwise, it’s been a slow air show. So far, only Airbus has announced any new business: a 10-jet deal with Yemenia Airlines with a list price value of $700 million. (The airline’s probably paying closer to $455 million for the 10 A320s, after discounts.)
Both Boeing and Airbus are talking with Emirates about an order for “tens” of mid-size widebodies, either A330s or 777s. Emirates CEO Tim Clark told Dow Jones that both jet-makers will have delivery slots open in 2011 that Emirates could fill, and added that it “won’t be long” before the airline decides who it will order from.
Boeing at the air show has been mostly talking about prospects for the future. Albaugh said the Company is already seeing an uptick in demand for air freight, but passenger numbers are likely to remain flat into 2012. Don’t expect a surge in new passenger jet orders until 2013-14, he said.