Boeing bid farewell to its base camp for many years, and all production of cash cow aircraft moved to the south

category:Finance
 Boeing bid farewell to its base camp for many years, and all production of cash cow aircraft moved to the south


Boeing currently produces 767 and 747 aircraft at Everetts plant in Washington, D.C., with a peak production of about 15 wide body aircraft per month. As the 747 aircraft project ends in 2022, the first batch of 777x aircraft will be delayed. By 2022, the monthly production of these factories will be reduced to about 6 or even lower.

Boeing last year raised Dreamliner production to 14 a month, with seven in Everett and seven in South Carolina. Now the total production is down to 10 and plans to drop to six next year.

According to Boeing statistics, a total of 8 new commercial aircraft orders were recorded in August this year, with cancellations exceeding new orders for seven consecutive months, indicating weak customer demand. Boeing delivered 13 aircraft in August, up from four in July but down from 18 in the same period last year. Boeings deliveries in the first eight months of this year plummeted 68.5 per cent year-on-year to 87 aircraft. With the exception of the 787, most of the deliveries are cargo or military aircraft.

Boeing has been trying to strengthen its finances since the world-renowned 737max has been grounded for more than a year and a half. Some organizations predict that Boeing may burn 23.3 billion dollars this year due to grounded flights and the impact of the epidemic. Boeings chief financial officer, Greg Smith, said in July that the companys goal is to boost cash flow and restore the strength of its balance sheet as soon as possible.

On Wednesday, the news of 787 Dreamliner production transferring to South Carolina was heard. Boeings share price rose with the market on Thursday, closing up nearly 1.6%.