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737 MAX

Last week it emerged that Boeing is now discussing a 737 MAX10 with customers on a serious level, and that its sales people have been given “authority to offer” the aircraft.  The model would be the fifth in the MAX range, augmenting the existing the MAX7, MAX8, MAX8-200, and MAX9.

The MAX10 has the following key changes:

  • 66 inches longer than the MAX9
  • Single class passenger capacity up to 230
  • Slightly higher MTOW
  • LEAP-1B Engine
  • Trailing-link main gear
  • Entry into service approximately 2020

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Bombardier announced that its 2016 C Series deliver schedule will be delayed, while citing the statistics from the first two aircraft in service with Swiss.  The good news is that the two CS100 aircraft in service with SWISS have collectively flown nearly 400 revenue flights, and accumulated nearly 600 flight hours.   The bad news is that Bombardier stated engine delivery delays will cause delivery reductions from a planned 15 to only 7 aircraft in 2016.  Since the OEMs are paid their final installment on delivery of aircraft, it impacts revenues and cash flow. The company will deliver the third CS100 to SWISS next month and deliver the first CS300 to airBaltic in the fourth quarter.

The supply chain is under stress.  During the UTC media day event prior to the Farnborough airshow,  P&W pointed out their greatest concern was… Continue reading

We have posted a few stories about the single aisle bubble.  Now it seems there are cracks in delivery slots coming.

Michael O’Leary has an insatiable appetite for 737s.  If delivery slots open up, exploiting them will be a card Ryanair has played before.  “If additional slots became available in 2017 or 2018 we’d happily take them,” Mr O’Leary said in London. “If Boeing have more cancellations and all of a sudden instead of having oversold their order book they now have unplaced aircraft, I’m sure they’ll come back to us.”

That last comment is especially apropos.  Yesterday Qatar’s CEO Akbar Al Baker made a strong statement, again.  The threat to walk away from its A320neo order are strong words.  Qatar obviously needs single aisle aircraft to create feed for its growing longhaul network.  Earlier this year Mr… 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

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