No net orders in 2014 sees Boeing plan to reduce 747-8 production to 1 unit per month

As a result of a blank net order book for 2014, Boeing has continued to reduce production capacity and aims to produce just one 747-8 per month from March 2016, reducing production by 23%. Currently the airline is producing 1.5 units per month and had already scheduled a slowdown in production to 1.3 units per month starting in September. Boeing were clear to state that the reduction in production was not connected to the announcement that President Dennis Muilenburg will succeed Jim McNerney as Chief Executive from the first of this month.
This move by Boeing was not unexpected with the current state of the cargo market, though two recent events have eased matters a little. Russia cargo airline Volga-Dnepr Group has now committed to buying 20 747s, and the U.S. Air Force announced earlier this year that it would purchase an undisclosed number of 747s to update the Air Force One Presidential fleet. Earlier in June Boeing cut its long-range forecast for large wide-body aircraft, a category that includes both the 747 and also the Airbus A380, by 13%. Boeing now anticipates 540 747-8s will be required over the next 20 years, reduced from its forecast in 2014 for 620. As of May this year Boeing has orders for 32 aircraft at a list price of US$370m each.
Bruce Dickinson, Vice President and General Manager of the 747 program stated in an internal company report, “With recent orders and commitments, along with these changes announced today, we anticipate a stable future for the 747 production system.” Despite recovery in the cargo market, Dickinson also stated that “overcapacity of freighters in the market” has prompted Boeing to slow down production. However Boeing are not alone as Airbus is also struggling to sell the double-decker A380. They are now considering revamping the model with new more efficient engines if they can generate sufficient interest from potential customers.