Background

Our team discussion and near-term narrowbody strategy focusing on Boeing’s next moves.  Ernie Arvai, President of AIG characterizes Boeing’s position as such “Boeing is in a precarious position in the narrow-body market. Airbus now has a 60/40 market share in new order backlog and has gained a competitive advantage. The 737 MAX 8 appears to be an economically strong airplane that is right at the sweet spot of the narrow-body market, but the MAX 7 doesn’t compete well with the Airbus A220-300, and the MAX 10 doesn’t offer the flexibility that the Airbus A321neo family provides.”  He views gaps in the Boeing product line that need to be filled if Boeing is to regain narrow-body parity with Airbus.

Michel Merluzeau, AIR Research Director views Boeing’s path forward as a two-tier strategy over the next few years.   In his opinion “Fundamentally, Boeing needs to stabilize the MAX and return to “normal” production volumes as we return to a post-pandemic environment.” He also agrees with Arvai about the MAX8 “t is very true what you say about the MAX 8, and while I’m not going to qualify it as the “heart of the market,” it certainly is from the economic standpoint a very strong product for Boeing.”    Merluzeau believes that stabilization of production of the MAX is essential to Boeing’s future strategy since that is going to pay the bills for any future aircraft program. This airplane (the MAX Family) is going to be the future foundation of BCA.

 


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