Boeing Plans Further Boost to 767 Output

Boeing Co. said Wednesday that it is planning to raise monthly production of its 767 widebody jet to 2.5 in late 2017 to accommodate a previously announced 50-plane order from FedEx Corp.

The plane maker currently builds around 1.5 of the jets each month and had already outlined plans to boost this to two early next year. It will now raise output further to 2.5 in the fourth quarter of 2017.

Boeing's Everett, Wash., assembly line has built passenger and freighter versions of the 767 since 1981, and is gearing up to begin regular production of a heavily modified version to serve as a refueling tanker for the U.S. Air Force, which plans to buy as many as 179 aircraft.

"The 767 has a very healthy backlog through the mid part of the next decade," Brad Zaback, vice president and general manager of the 767 program said. "We are confident the market will support a long-term future for the 767."

Despite troubling signs for regional economic growth and receding air cargo traffic, FedEx in July announced a deal for 50 of the freighter variants and holds options to purchase 50 more.

Mr. Zaback said in an internal company memo that he expects the 767, the company's longest-running large twin-jet program, to add employees as its production tempo increases.

"Increasing the production rate in 2017 provides the flexibility needed to address additional commercial orders while meeting all of our customer requirements," said a Boeing spokesman.

Write to Jon Ostrower at [e-mail]

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September 09, 2015 16:35 ET (20:35 GMT)

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