Monday, June 20, 2016

Not Counting The Iran Effect The 737 Orders Are Strong (Update)

Boeing is six months through the order year. Critical is the programs viability for producing both the 737 NG and the 737 Max. An optimal transition pace from the NG to the Max is critical. In essence, Boeing would like a full NG order book through 2020 after which the Max becomes the predominant production floor model in Renton, WA. The Boeing book as of May 2016 has about 1,215 unfilled 737 NG for all types. A sufficient backlog number for keeping the production at current levels. 

Iran Effect via "All Things 787" Link:


“A little more detail came out regarding the proposed commercial aircraft deal between Boeing and Iran.  There are no 787s in the deal but here is the breakout:”

Direct purchase:
4 x 747-8I
15 x 777-9
15 x 777-300ER
6 x 737 NG
40 x 737MAX

Lease:
29 x 737 NG


During 2016, a problem for Boeing would be maintaining an order flow for both the NG and the MAX. So far so good, as it has booked orders in an almost 50/50 split for both the NG and the Max (see tables below). The NG has about 46% of the orders and the Max about 54% of booked 737.

Total NG's ordered Year-To-Date:



Snagged from Boeing Data


Total Max ordered Year-To-Date:

Per Boeing
The total un-adjusted book count is for 265 single aisle aircraft accumulated since January 1, 2016 until June 20, 2016. Production units per month does not equate with orders received and the backlog continues to grow, thus a smooth production output will be achieved when Boeing increases to fifty-two units a month in the near future.