Thursday, June 6, 2013

Boeings 737 Scorecard for May

Boeing is robustly following through with orders on its 737 program in total. As established in an earlier feature, it has become a Juggernaut of orders. Here is Boeing's own order scorecard.

Order DateCustomerModel SeriesOrders
07-May-2013KLM - Royal Dutch Airlines777-300ER1
13-May-2013Southwest Airlines737-8005
13-May-2013Southwest Airlines737-MAX30
08-May-2013Turkish Airlines737-80020
08-May-2013Turkish Airlines737-MAX50
21-May-2013Unidentified Customer(s)737-80040
07-May-2013Unidentified Customer(s)737-900ER2
21-May-2013Unidentified Customer(s)737-MAX61
30-May-2013Unidentified Customer(s)737-MAX5
06-May-2013Unidentified Customer(s)777-300ER2
May Total232

By the numbers:

NG- Seventy-five 737-800 (75)

The Max: One hundred and forty-six (146)

Total 737's                                      223

So lets look at producing 42, 737's a month.  That sales book for May extends the Productivity Queue over five months with one month of orders. The unidentified types may be announced at the Paris, which includes a number of 66 unidentified MAX.  TUI's order of 60, may be the one added, as unidentified, since the unidentified went up on May 21 by 61, about the same time TUI announced it is purchasing 60 Max's. Paris may clear that up those unknown assignments, if they are "mentioned" at the market place.

June in Paris, may add additional 737's that are not on the book yet, by name or unidentified, announcing additional sales for June not included in the unidentified May orders.  

What is significant is the 75 added to the NG -800 program.  This is an additional two months of production for that type of product. If Boeing wants to extinguish the backlog of  737-NGs anytime soon, it is happily adding on two more months of productivity at the back end of its order book. This forces a greater reliance on Charleston to kick start the Max program. Orders will continue to trickle in on the NG as those new orders bridge the inventory gap for airlines until the Max starts delivering out of Charleston. Boeing then will retool Renton Washington plant when it finishes the "gap orders", currently trickling in until the Max is flying out the door.  Then Renton is able to retool and supply Asian and Pacific markets with the MAX.