Boeing says 737 build rate may change

Boeing Co., the world’s second- largest commercial-jet maker, is asking suppliers to be ready for a 10 percent increase or decrease in the build rate for its 737 single-aisle aircraft, depending on the economy and orders.

The company is meeting partsmakers at the Paris Air Show this week to convince them to trust Boeing’s forecast rather than making their own assumptions and potentially scaling back production without merit, Scott Carson, chief executive officer of Boeing’s commercial-planes unit, said today in an interview.

“I’ve told our suppliers to prepare for either a 10 percent increase or a 10 percent cut, and in the meantime to give us what we need now,” Carson said. “I think they’re hearing us. They see we’re delivering on what we forecast so far this year, and that gives them confidence.”

Boeing shipped 201 jets in this year’s first five months toward its 2009 projection for 480 to 485 deliveries. It’s sticking to the forecast even as cancellations have almost outweighed new orders this year and carriers have deferred dozens of planes. Boeing, which along with larger commercial rival Airbus SAS usually reveals billions of dollars in new orders in Paris, hasn’t announced a single one yet. The show runs June 15 to 21.

Carson, 62, earlier told Bloomberg Television that Boeing had no plans to cut 737 production and that there might be an opportunity to increase output if the economy picks up. Ryanair Holdings Plc and UAL Corp.’s United Airlines have both said they’re shopping for new jets, seeking to win discounts from planemakers amid the slump.

Best-Selling Plane

The 737 is the world’s best-selling plane. Narrowbodies make up the biggest market.

Boeing builds 31.5 of the 737s a month right now. The company in April said it would cut production of its 777 widebody by 29 percent to five a month starting a year from now and would delay planned boosts for its 767 and 747 models.

Boeing is watching its inventory levels and being “very mindful and sensitive to the market demand so we don’t overproduce,” Pat Shanahan, the vice president of commercial airplane programs, said in a briefing in Paris today.