Boeing May Boost 737 Production

Boeing (BA Quote) believes some major U.S. carriers are close to placing orders for new 737s, and it's considering a production increase to meet the anticipated demand.

At an investor conference this week, Scott Carson, CEO of Boeing's commercial airplanes division, said the company has been trying to determine whether it should raise output. "It feels like there might be enough solid demand to do it, but we're watching very carefully," he said.

Before it can commit to building more planes, Boeing has to determine if the move could be supported by its supply chain, by its factory and by market demand, Carson said. He noted that the increase could be justified by the large number of MD80 airplanes still flying, which "are not very efficient with this fuel price" and will need to be replaced. ...