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Boeing will halve jumbo jet production | Boeing will halve jumbo jet production |
(about 2 hours later) | |
The world's biggest plane maker, Boeing, will cut production of its 747-8 jumbo jet in half and take a charge of $569m (£397m) in its fourth quarter. | The world's biggest plane maker, Boeing, will cut production of its 747-8 jumbo jet in half and take a charge of $569m (£397m) in its fourth quarter. |
Starting in September Boeing will slow the production rate to six planes a year from twelve. | Starting in September Boeing will slow the production rate to six planes a year from twelve. |
The four-engined plane is being overtaken in popularity by twin-engined craft which are more fuel efficient. | The four-engined plane is being overtaken in popularity by twin-engined craft which are more fuel efficient. |
However, the 747 will still be used for the Air Force One presidential fleet, which is due to be upgraded. | However, the 747 will still be used for the Air Force One presidential fleet, which is due to be upgraded. |
Boeing shares dipped shortly after the announcement but in Friday trading are up almost 2%. | |
In recent years the 747 has been more popular as a cargo plane, rather than a passenger jet. | In recent years the 747 has been more popular as a cargo plane, rather than a passenger jet. |
Production had already fallen in March of this year to one aircraft a month, from 1.3. | Production had already fallen in March of this year to one aircraft a month, from 1.3. |
Ray Conner, chief executive of Boeing Commercial Airplanes, said in a statement: "The air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 freighter." | Ray Conner, chief executive of Boeing Commercial Airplanes, said in a statement: "The air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 freighter." |
The company said global passenger traffic and demand remained strong. | The company said global passenger traffic and demand remained strong. |
Boeing and European rival Airbus delivered record craft last year. | Boeing and European rival Airbus delivered record craft last year. |
But despite the record deliveries, new orders fell by half last year. | But despite the record deliveries, new orders fell by half last year. |
However, Boeing is ramping up production of its 787 Dreamliner, built largely with lightweight composite materials that reduce fuel use. | However, Boeing is ramping up production of its 787 Dreamliner, built largely with lightweight composite materials that reduce fuel use. |
Production will rise from the current 10 per month rate to 14, by 2020. | Production will rise from the current 10 per month rate to 14, by 2020. |