Boeing CEO Jim McNerney denied commercial aviation was in a production bubble on Monday, shortly after closing a $7.2 billion deal with Air Lease .
Boeing sold 75 737 MAX to the U.S. aircraft leasing firm, who were first-time buyers of the narrow body jetliner.
“We have been accused over the last decade of lagging demand. I am a little bit mystified we now get accused of overproducing,” McNerney told CNBC at the Farnborough International Airshow . We have not seen any data yet that suggests we should slow down.”
He said Boeing had been “steadily” upping production rates over the last few years. Production rates for both the 737 and the 787 increased in the first quarter of 2012.
McNerney said demand for planes such as the 737 MAX existed because of a need to replace older technology. “It pays back very quickly,” he said.
He added that forecasting demand for aircrafts was comparatively simple. “It is half driven by technology replacement and half driven by GDP . The outlook is pretty steady.”Page 1 of 2 | Next Page