By Eric M. Johnson

EVERETT, Wash. (Reuters) - Boeing Co's <BA.N> chief executive said on Tuesday that the financial fallout from the grounding of its 737 MAX jetliner would not slow the world's largest planemaker's appetite for deals in the higher-margin aircraft services sector.

"Our ability to do those continues to be strong," Boeing CEO Dennis Muilenburg told Reuters at the company's widebody manufacturing plant north of Seattle, referring to acquisitions it has made to enlarge its two-year-old Global Services division.

"We have the financial capacity to manage the MAX situation and continue to make our investments for the future," he said.

Boeing's fastest-selling, single-aisle jet was grounded in March after two deadly crashes. The company is working on a fix for software at the centre of both crashes and is aiming to get the jet back in the air as soon as October. It has completed around 560 flights with the new software, Muilenburg said on Tuesday.

"We still anticipate getting the return-to-service early in the fourth quarter," Muilenburg said. "We are making progress on that schedule."

Meanwhile, Muilenburg aims to expand the services business that includes aircraft parts, maintenance and analytics to $50 billion in revenue in a decade from its 2018 revenue of about $17 billion.

Boeing bought parts distributor KLX Inc last year for $4.25 billion including debt, in its largest deal since merging with McDonnell Douglas in 1997. Boeing and rival Airbus SE <AIR.PA> are pushing into the market for repairs, maintenance and analytics as airlines consider outsourcing more of such services in an effort to keep a lid on costs.

RAMP-UP AHEAD

Boeing has had to divert resources to the 737 MAX from across the company as it works to win approval from aviation regulators for its software upgrade.

In April, Boeing dropped production to the current rate of 42 aircraft per month after halting deliveries of the MAX to airlines, cutting off a key source of cash and hitting margins. The total cost of the 737 MAX crisis has grown to more than $8 billion and counting.

Reuters reported last week that Boeing told suppliers it will ramp back up to pre-crash production rates of 52 aircraft per month in February and reach a record 57 aircraft per month in June. Investors took that as a sign of optimism that the MAX will fly again commercially as early as October.

"We are also working with our supply chain on future rates," Muilenburg said on Tuesday. "This is all consistent with that October return to service date."