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BOEING TO CUT PRODUCTION RATES

 SEATTLE, Jan. 26 /PRNewswire/ -- The Boeing Commercial Airplane Group announced today it will reduce production of its 737, 747, 757 and 767 models because of the sustained financial problems of many of the world's airlines.
 The company said that 737 production will decrease from 14 a month to 10 a month in October 1993 and that 747 production will be trimmed from five to three a month in the second quarter of 1994.
 In addition, 757 production, which was to be reduced from the current rate of 8.5 a month to five in November 1993, will now reach that level in September 1993. Production of the 767, now at five a month and scheduled to fall to four a month in November 1993, will drop to three a month in October 1993.
 The company has not yet determined the actual impact of these reductions on employment, but it is expected to be significant. The number of jobs to be lost will be announced as soon as reliable estimates are available.
 The decision to trim production is based on customer requests for deferred deliveries, as well as many airlines' financial inability to place new orders.
 "While we remain optimistic about the longer-term prospects for our business, the present reality is sobering," said Dean Thornton, president of the Boeing Commercial Airplane Group. "As painful as these cuts are, they are critical to helping our customers regain their financial health."
 Thornton said, "There's no escaping that this will mean hardship and job losses, and we'll do everything we can to minimize the impact."
 The production cuts announced today are not tied to any particular customer; Boeing continually monitors the market, works with customers and changes production rates as overall market conditions warrant.
 Here are the company's current announced production rates by model:
 Unfilled
 January June September October 2nd Qtr Announced
 Model 1993 1993 1993 1993 1994 Orders
 737 14 14 14 10 10 641
 747 5 5 5 5 3 233
 757 8.5 7 5 5 5 291
 767 5 5 5 3 3 168
 -0- 1/26/93
 /CONTACT: Susan Davis, Jack Gamble or Steve Smith of Boeing Commercial Airplane Group, 206-237-1710/
 (BA)


CO: Boeing Commercial Airplane Group ST: Washington IN: AIR SU:

LM -- SE006 -- 8909 01/26/93 08:39 EST
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Publication:PR Newswire
Date:Jan 26, 1993
Words:382
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