As airlines start to accelerate their fleet updating, 737 operators are in an especially good position
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As airlines start to accelerate their fleet updating, 737 operators are in an especially good position. Boeing is aggressive to keep its existing customers and has earlier delivery slots than Airbus. As lessors and airlines consider their fleet updating, in light of a traffic recovery, but also in an effort to be seen as “greener”, should their choice be to replace existing NG models with equivalent MAX replacements?
The selection process is, as always, a tradeoff between operating economics and capital costs. Fortunately for the buyers, the usual drivers are becoming more in focus again as the pandemic impact gets baked in. People are increasingly coming around to the idea the Covid virus is here to stay and we are going to see successive variants. Fear of the pandemic declines with growing confidence that the pharma industry can keep pace with vaccines.
Given the numbers, it seems clear fleet planners should favor the MAX9 going forward. As traffic recovers, but schedules remain reduced, the upsizing case is clear. If you’re staying with the 737, the MAX9 is the one to go for.
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