US aerospace giant Boeing has said it would slash production of its twin-aisle 777 aircraft to five planes per month from seven, citing "significant deterioration" in the airline industry.
Boeing yesterday said in a statement it decided to reduce 777 production, beginning in June 2010, "due to significant deterioration in the business environment for airlines and cargo operators driven by unprecedented global economic conditions."
Boeing said it would also delay previous plans to "modestly" increase production of its new 747-8 jumbo planes and 767 aircraft.
The company emphasised that the production rate adjustments on the three aircraft models "solely reflect delivery deferrals requested by customers in response to unprecedented declines in global passenger and air-cargo volumes."
No 767, 747 or 777 orders have been cancelled this year, it added.
No change in the production rate of the 737 aircraft was being made "at this time."
"These are extremely difficult economic times for our customers," Scott Carson, Boeing Commercial Airplanes president and chief executive, said in the statement released after the stock market closed.