Tipping point

The new single-aisle order trend is tipping toward the 737 MAX, which since its first order has claimed more than 50 percent of new single-aisle orders placed versus the neo.

The airplane is proving to be popular not only with current 737 customers, but with new customers as well. Today, Air Canada finalized an order for 61 737 MAXs, bringing total MAX orders to 1,934.

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Thanks to Air Canada for their 737 MAX order.

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Air Canada has invested in 33 MAX 8s and 28 MAX 9s to replace its current all Airbus single-aisle fleet. While we often talk about the advantages of the 737 MAX 8, because it lies in the heart of the single-aisle market, this investment by our customer points to the value the MAX 9 offers.

Carrying 31 more seats than the 737 MAX 8 in a single-class configuration, the MAX 9 offers the best fuel efficiency per seat and lowest seat-mile cost in the family. In comparing it in a two-class configuration to the A321neo, the 737 MAX 9 is 6 percent lighter and costs 7 percent less to operate per trip no matter how far you fly, thus providing the most cost efficient option to the marketplace.

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The 737 MAX 9.

Other customers like Aeromexico, Alaska, Icelandair, United, Lion Air, Turkish, TUI and lessors such as ALC, ACG and Avolon have also invested in the value the MAX 9 can bring to their fleet. To date, 12 customers have placed a total of 281 MAX 9 orders. And we expect this number to continue to grow as customers exercise options and conversion rights and new customers order the airplane.

Going forward, we expect the new single-aisle order trend to continue toward the MAX.

Comments (13)

V V (Montréal, Québec):

The 737 MAX will enter into service in 2017 and the A320neo will enter into service in 2015.

I guess it explains the difference of about 800 orders between the two.

In any case, the two have a huge backlog.

Bee (Boston, Massachusetts. USA):

I know you're a salesman and your job is to twist numbers to suit your facts, but the least you could do is is try to at least twist those numbers a little more cleverly?

aeroturbopower.blogspot.nl/2014/04/everyones-winner-baby.html?m=1

gareth (Australia):

Hi Randy - we all know you are a great sales man but spruiking the max being 6% more efficient than a neo stretches the truth. The 737 is a 1950s design that has been enhanced vs a a320 being a 1980s structure - something inherently more efficient. If the truth was to be told both aircraft are of comparabke efficiency (the a320 slightly better) but like all things the final decision as you full well know comes down to price. Credibility is somewhat lost when misleading figures are quoted.

Cheers and take care.

Andrew P Boydston (Boise, ID USA):

I was wondering if you would care to comment on the MAX class 737-9. Will all engines have the standard engine opening shown in these pictures? No more 737 flattened oval on the bottom, since the the MAX gears will sit the 737 off the ground for better clearance and operation. If that is a yes for those pictures, then you need not bother with a response. The Aircraft looks ready to come out and play with those dual advanced engineered winglets. I can't hardly wait for first test flight, where MAX will demonstrate it exceeds expectation on fuel burn performance just like the 787 performed. Back in the day, the 787 was to increase by 15%, when it made 21% fuel economy increase instead. It will be exciting times for the MAX once it flies.

Tim K (Ont Can.):

Well Boeing, you should be proud of yourself. You achieved 100% market share in Canada with the narrow body fleet. All the major carriers are now flying versions of the 737. Westjet, Canjet, Sunwing, Air transat and now Air Canada.

Thats quite an accomplishment, congratulations

Josh Lyman (Haverford, PA):

If there is one head to head comparison that certainly doesn't go in favor of the MAX, it's clearly the -9MAX vs the A321neo.

Dion Rust (Herts, UK.):

Both aircraft are doing well but the neo is staying in front of the max.

3975 (57%) A320neo
2927 (43%) 737Max

Salesmen always bend the figures! ;-)

mukong58 (nz):

Although the max series is still a derivative of the mid 90's platform yet, i have observe that Boeing have gone to the extreme in giving it the latest available technology to be able to sqeeze-out the most in fuel efficiency. The wings which is among the top contributor in efficiency is design to deliver to the limit performancewise and maybe, if i got it right, they will be usiing an aerodynamic skin at the tail pin to minimize drag and further, the use new aluminum for weight reduction, these among others, will make the Max the better plane than the neo series. Just may thought.

Norman (Long Beach, CA):

Congrats to Air Canada on selecting the 737 MAX. It will not be long at all until the number of 737 MAX orders exceeds the 2,000 mark.

Ted (Manchester):

It's clear your spin on figures is dubious to say the least. Not that I need to rub more salt in those wounds but Leeham News & Comments article on the respective sales of both show that worldwide sales of both heavily favor the Neo. Whilst this sale to Air Canada is great news for Boeing, it masks the reality of which model is really preferred.

I suspect this comment won't make those printed but this is one market Boeing are losing bit by bit and no amount of spin will change those facts.

Scratch (AK, USA):

The A321 is an underwinged airplane. It always has been and always will be unless a larger wing is developed for it. I'm not sure how adding weight from heavier engines helps with that problem vs the Max9. No one likes starting the cruise at FL280, and operating the NEO engines at cruise settings above "the bucket" won't help either.

The bottom line is that the A321 needs a larger wing. Make it large enough... and Airbus could stretch to an A322 and pick up the 757 marketshare. I doubt we'll see it though. They'll just plod along with yet another second rate product, the A321Neo, leaving the entire market to the clean sheet, NSA Boeing will build in the next decade.

Rob (Vancouver, Canada):

Regarding Tim K's comment on all major carriers in Canada now flying versions of the 737.

It is my understanding that Air Canada's newly formed low cost airline Rouge will be flying some of their older narrowbody Airbus models this year along with their older 767's. With more to be added when the 737 Max enters service as Rouge expands their routes.

Air Canada's fleet now includes 22 777's and with more deliveries of 787's to come. It appears that Air Canada is now transitioning to an all Boeing fleet for their larger aircraft requirements.

Hope to see an A/C order in the future for the 777X.


Randy - when is the name change coming for the 777X??

Zhong Liang Ong (Singapore, Singapore):

Note that he said per-seat of any Boeing aircraft, and trip cost for the 737-9 MAX vs the A321. It's hard to imagine the B737-9 MAX beating the A321 on a per-seat basis (which his statement did not say, and which is borne out by the order numbers where the B737-9MAX is outsold by the A321 by almost 100%). If only there was a 757 MAX...

Regarding the age of the plane, the current '1950s' 737-800NG is actually slightly better/equivalent to the 1980's A320 on a per-seat basis, according to customer figures http://leehamnews.com/2013/06/14/comparing-the-737-and-the-a320-the-story-continues/ . In this regard it seems both planes have had similar sales figures for the last 15+ years. Looks like the lighter 737 gives it a slight advantage to offset the age.

Note: Singapore Airlines does operate a lot of short-haul regional flights using widebodies (such as the 200mile SIN-KUL hop). I'd much rather be sitting in Twin Aisle's Cafe :D than a 3-3 narrowbody.

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