Hitting 1,000

What a great way to start 2013! This morning, we announced an order from Aviation Capital Group that officially pushed our 737 MAX orders to date to more than 1,000 (1,029 to be exact).

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ACG’s order, consisting of 50 737 MAX 8s and 10 737 MAX 9s, was finalized in December 2012.

ACG and Boeing have a long relationship and this order, booked in December, shows the continued strong demand for the MAX in the leasing industry. It also once again proves that 2012 was indeed the Year of the MAX.

We’re incredibly pleased with the market acceptance of this airplane. Our customers really like what they’re seeing and hearing so far. And there’s no doubt we’ve done a better job than our competition in building the bridge between the Next-Generation 737 and the MAX to make a smooth and successful transition.

I’ll leave you with some brand new images of the 737 MAX. Enjoy!

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Comments (6)

Gordon Werner (Seattle, WA):

Those new CFMs hanging off of the wings almost look like GE90s compared to the original 737

Tim K (Ont Can):

Your comments about a smooth transition from NG TO Max versions are just as interesting as Airbus's comments quoted directly off their website regarding their NEO 320 version.

"The new A320 versions will have over 95 per cent air frame commonality with the existing models, enabling it to fit seamlessly into existing A320 Family fleets – a key factor for Airbus customers and operators,"

If Airbus is at 95% commonality and your supposedly better than that, then the question I have is what % is the 737 at?

Norman (Long Beach, CA):

1,000 plus 737 MAX orders, not a bad way to start the new year.
One could only imagine the backorder the 737 MAX will have come time to put the plane in production in 2017.

Tom (Dallas TX):


Given the value of the marketplace in this particular sector, I feel Boeing would have done themselves a huge favor by offering an alternative engine choice, like AB have done. As profit margins are squeezed and fuel cost continue to rise, it would appear the P&W Pure Power engines could be a very useful marketing tool. Good to see the MAX has reached a landmark sales target for 2012.

Bob A (Boston, MA):

Tim K, Not sure Randy was talking "commonality" when he spoke to the bridge from NG to MAX. My guess is he meant ramp up (MAX) and ramp down (NG) of production, as well as readiness of customers, GE and Boeing to support the MAX.

The bridge point as I understood it is that Airbus has a gap in its a320 classic order book that could require it to temporarily reduce production rates before ramping back up fully with neo where as Boeing has an NG backlog almost perfectly sized for 4 years production that jives with the ramp up of MAX. With Navy P-8s and other NG nominal orders still coming Boeing will have a better buffer than Airbus during the transition. They also have a new, co-located 3rd assembly line that will support ramp up and conversion to Max, and ultimately enable ramp of Max to 60/month if demand warrants. Airbus has less orders for its A320 classic, an elongated period building both, and a more complex final assembly supply chain to manage (3 or 4 locations as I recall)

This all somewhat speculative on my part. But assuming I am directionally correct, the current edge (60/40) that Airbus holds with neo orders over Max is almost entirely due to the difference in launch and delivery dates. It will almost certainly evaporate by 2017 as a result. And Boeing and Airbus will likely deliver nearly an equivalent total number of 737s and A320 in the next 5 years. Not sure what advantage Airbus thinks they have, but it's certainly not enough to matter in the whole scheme of things.

What does matter is whether Airbus can execute on the A350-900 and 1000. And whether Boeing can execute on the 787-9 and 787-10. If all goes as planned, Boeing retains a trump card with the 777x. I'd bet on Boeing to hold on to its newly regained delivery lead until 2020. Beyond that timeframe, with new technology and new competitors becoming more viable, all bets are off!

Brent AT (Mountain View, CA ):

I love you guys! My Uncle, who lives in Seattle, gives me Frontier Magazines. It would be great if you work on the 787 and probabliy your 737max's. It also would be great if sent your magasines. Keep up the good work, aviation is the best.


Brent

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