On the road again

Unless I look out the window, it’s sometimes hard to keep track of what city I’m in. Such was the case last week when I took part in the Australia stop of the Dream Tour—and then headed straight to Europe for a 737 MAX road show.

I flew out of Melbourne en route to London (via Singapore) and landed around 5am. Less than five hours later, I was giving a MAX briefing to the London media. Let’s just say a hot shower can do wonders.

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London was all decked out during my visit for the Queen’s Diamond Jubilee.

This is the third time I’ve had the chance to update media and stakeholders in a specific region about the 737 MAX. This trip focused on the European market with stops in London, Paris and Frankfurt. Europe is the one of the top three markets for single-aisle airplanes with roughly half the demand coming from the need for more fuel-efficient replacement aircraft. And that’s exactly what the MAX will give our customers.

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My 737 MAX briefing in Paris.

Our timing in Europe was a great opportunity to set the record straight about what our airplane will bring to the market following our competitor’s media briefings in Toulouse earlier in the month. Media had lots of great questions about how our product stacks up against the competition and how we can claim to offer more value in the market. I encouraged them not just take our word for it, but to ask appraisers, financiers and leasing companies which airplane they value more in the market today. They’ll find that the 737 has higher lease rates, higher “fair market” values and higher residual values. The 737 MAX will build on this value and maintain our 8 percent per-seat operating cost advantage in the market place. In addition, I made a point to talk about market parity. When it comes to orders for the MAX, we’re on the right trajectory to catch up with orders for the A320 neo.

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I spotted one of ANA’s 787s at the Frankfurt airport.

Speaking of the market, our team is putting the final touches on our new Current Market Outlook that will be unveiled just before the Farnborough Air Show next month. I look forward to sharing that with you down the road. I’ll leave you with a look at one of the incredible meals I had on this European trip— roast pork knuckle and potato pancakes in Frankfurt.

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Comments (7)

Blaine Harris (Renton):

"London was all decked out during my visit for the Queen’s Diamond Jubilee."

Caption sounds like you visited specifically for the jubilee.

Maybe should read "During my visit, London was all decked out for the Queen's Jubilee."

:-)

Kevin (Dallas):

Most interesting to see the back and forth between Boeing and Airbus over these planes. Once they are both in service I look forward to getting a true picture. And the picture of that food looks amazing Randy. I always enjoy the personal touch to your postings.

George (UK):

Nice post, as always great competition between airbus and boeing, really not much between you guys. Can't wait to see the MAX in full swing!!!

Andrew Boydston (Boise, ID USA):

As always, warm regards for keeping all of us up-to-date with the Boeing product. I would love to be a fly on the wall at one these meetings, to hear the questions and answers you offered. It seems there is often a cognitive dissonance, established among the press and experts walking into such a gathering. Having Sup-positional filters engaging industry minds for the discernment of facts. Good luck with removing the filters and striking to the heart of matter. Performance(From MAX), Program(Having The Edge),and Profit(for the Customer).

Norman (Long Beach, CA):

With the addition of the new winglet design and higher diameter fan, the 737 MAX should pace ahead. I am glad to see Norwegian order the 737 MAX but the "dogs dinner" comment by Ryanair does not give me hope that the budget airline will order any soon with the current leadership but I am happy that other European airlines are interested in it.

Dennis Dahlenburg (Erlangen, Germany):

Thanks for the truly comprehensive and insightful MAX briefing in Frankfurt. Glad you found a place in Frankfurt for some hearty regional food.

Kees:

"They’ll find that the 737 has higher lease rates, higher “fair market” values and higher residual values."

It seems the leasing companies sofar ordered NEO's.

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