The decision to “right size” the 737 MAX7 has caught the attention of industry observers. Some think it’s a mistake, while others think it is the ideal reaction to Airbus, with an unintended consequence of also giving Bombardier another hurdle. Either way, the process of how Boeing got to the position of re-thinking the MAX7 demonstrates that Boeing can and will change direction quickly as needed. Continue reading
At the Farnborough Air Show, Boeing announced it had finalized its design for the 737 MAX 7, adding two rows of seats and utilizing the same wing as the 737 MAX 8. This should both simplify production of the two aircraft while providing additional seats for more competitive seat-mile costs against new technology competition from Bombardier and Embraer, and a competitor closer in size to the A320 rather than A319.
The initial MAX7 could not compete well against the CS300 and E-195 E2, and even after gaining an additional 9.5% in seat-mile economics with additional seats cannot match the new technology competition. In addition, Boeing was competing hard on price with its MAX8 against A320neo, and now has a betteroginal alternative to enable the MAX 8 to capitalize on its 12 seat advantage and maintain better margins in narrow-body competitions.
The new MAX 7 will seat approximately… Continue reading