Boeing to Retain 737 Jetliner, Boeing 737 MAX At The First Flight
Boeing to Retain 737 Jetliner, The aircraft maker Boeing Co. is prepared to defend his rainmaker Boeing 737 jetliner as competition heats up at the top and the bottom of the single-aisle market profit, Chief Executive Dennis Muilenburg said.The threat to the US aircraft maker It was highlighted when Delta Air Lines Inc. last week announced orders for all new aircraft from Bombardier Inc. Series C and largest jet narrow-body Airbus group. The Airbus A321neo has captured 85 percent of the orders against its Boeing 737 Max 9, while the C Series is finally making inroads with smaller planes.
"We would not be surprised if Boeing were to change its narrow-body strategy in order to maintain their competitive edge," Ron Epstein, an analyst at Bank of America Merrill Lynch, wrote in a note to clients. "With orders Delta, Lufthansa and Air Canada and circulation of this year, the C Series is no longer a nuisance. The C series is a credible threat that has come to stay."
Boeing is considering its potential to the "middle market" dominated by once out of production Boeing 757 aircraft where larger narrow-body smaller twin-aisle models overlap segment response. Recreational stretch: the 737 largest Max and equipment with improved engines and a new landing gear to counter the A321neo.
"We will continue to watch the market, have productive conversations with customers," Muilenburg said at the annual general meeting of Boeing in Chicago on Monday. "If we have to make further movement in that space, we will be ready." The urgency has grown as Airbus took a commanding lead sales of its aircraft single-aisle. Ray Conner, executive director of the unit of Boeing Commercial Airplanes, told employees in February that it wanted to develop a strategy in the next 12 months.
The challenge is to find a design that justifies the renewed investment by airlines without undermining the 737, the largest gold mine Boeing. The horse battle jet favored by low-cost airlines, accounting for about 25 percent of total revenue, according to Bloomberg Intelligence analyst George Ferguson. The order book without cover 737 could be the most valuable asset of Boeing, at about $ 200 billion, according to Bloomberg estimates intelligence.
"We are in a strong position, but we also know that it is a competitive market," Muilenburg said. "We have the right products, but we will be relentless in our efforts productivity and ongoing costs."
Boeing has explored all new designs that will not be released for about a decade, including an elliptical frame with double aisles to speed up passenger boarding. Recently, the planemaker has also focused on simpler repairs that could reach the market quickly. The manufacturer has approached Max 7 customers Southwest Airlines and WestJet Airlines Ltd., about a redesign that would involve decreasing under the Max 8 to strengthen the capacity of the cabin and range.