Boeing gained a vote of confidence for its beleaguered 737MAX program with an LOI for a 200 aircraft order on Tuesday at the Paris Air Show. It is certainly unusual for an airline to order an aircraft model that has been grounded and remains grounded, so IAG must have additional insight into the certainty and timetable for the 737MAX re-certification for flight.
This is a shot-in-the-arm for Boeing, which badly needed some good news at Paris. The company has, and rightly so, been on the defensive since the two fatal crashes in which a faulty MCAS system has been implicated as a potential causal factor. Whether this order will cause others, such as Ryanair
, to also order is another question.
Analysis
IAG’s airlines operate primarily Airbus narrow-bodies, and this order will increase competition between the two OEMs for future narrow-body orders. While IAG also ordered the new A321XLR for Iberia and Aer Lingus, the customers for the 737MAX will likely be their low cost units Vueling and Level, and perhaps for some British Airways operations out of London Gatwick airport. This would seem to indicate a split between premium carriers (BA Heathrow, Iberia and Aer Lingus) which will operate Airbus narrow-body fleets and low cost carriers (Vueling, Level, and BA Gatwick) that will operate Boeing narrow-body fleets.
Boeing gained a vote of confidence for its beleaguered 737MAX program with an LOI for a 200 aircraft order on Tuesday at the Paris Air Show.It is certainly unusual for an airline to order an aircraft model that has been grounded and remains grounded, so IAG must have additional insight into the certainty and timetable for the 737MAX re-certification for flight.
This is a shot-in-the-arm for Boeing, which badly needed some good news at Paris.The company has, and rightly so, been on the defensive since the two fatal crashes in which a faulty MCAS system has been implicated as a potential causal factor.Whether this order will cause others, such as Ryanair, to also order is another question.
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