Air Transport World

Behind the power curve.

Boeing's announcement that it will cut production rates on several models and lay off 20,000 more workers over the next two years--even as it struggles to ramp up production to deliver a record 620 jets this year-- underscores the twin notions that Asia shows little sign of improvement and that Boeing consistently has underestimated the impact of the region's problems in its production plans and market forecasts (see article, page 38). "The situation in Asia worsened dramatically. It is much deeper and more prolonged than first estimated," admitted Chairman and CEO Phil Condit in announcing the changes on Dec. 1.

The 747 rate that was scheduled to drop from five per month to 3. …

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