Boeing (NYSE:BA) CFO, Greg Smith announced recently that the company is planning to boost its single-aisle 737 Max aircraft production. Smith said that higher demand and increased pressure from customers compelled the company to take the decision. Boeing has already increased the production of 737 jets to 42 a month from 38 a month ago. The number is expected to grow to 47 by 2017 and to 52 by 2018 or 2019. In a separate development, Boeing is teaming up with Sikorsky Aircraft on a vertical-lift project. Vertical-lift aircraft are designed to replace the Army's aging fleet of Apache and Blackhawk helicopters. Boeing and Sikorsky said that they're planning to test their joint aircraft by 2017.
This year, Boeing received 550 orders for the 737 aircraft, which represents about 75% of Boeing's commercial aircraft business. The company delivered 278 aircraft till July. Boeing and Airbus (OTCPK:EADSY) are competing with each other to deliver the next generations of their basic models, the 737 and A320. The next-generation basic models will offer greater fuel efficiency over the existing models. Airbus will deliver its first A320neo in late 2015, while Boeing plans to deliver its first 737 MAX in 2017.
In our original article, we said that Boeing is an excellent long-term play, while we remained optimistic about Boeing's financial performance this fiscal. Boeing said that it has delivered 342 commercial planes till July from the beginning of the year, nearly 12% higher than the same period in 2013. The company plans to deliver between 715 and 725 commercial aircraft this year, a more than 11% year-on-year increase. Further, Boeing's defense business is also expected to generate robust revenues, thanks to the Sikorsky-Boeing partnership. To learn more, read our original article.
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