Boeing Will Trim Production Rate of 747-8 from September

Chicago based Boeing Company said it will trim its production rate of 747-8 cargo plane to half starting from September. The action comes into effect due to a slump in the air-freight business. The 747-8 comes in two versions, passenger and freighter and is the largest among its jets. Softness in the cargo market is driving this cut and in September the company will decrease its rate of production or six per year or one per alternate month.

Boeing also said that it will record a $569 million charge against its 3015 fourth-quarter earnings. Reportedly, the company is also planning job cuts that could affect executive and managerial positions initially.

Boeing says it will try and move as many extra production workers and engineers possible to other programs which in certain instances are running at higher production rates like the production of 737.

To reduce costs, the company is also plans to carry on combining operation and administration of programmes like for
747 and 767.

In another instance, Boeing secured an order for forty 737-700 jets from United Airlines.

Shares of Boeing scaled $1.26 to close at $123.40. However, after the company made the announcement related to the
787 the shares slipped $1.70 to $121.70.