Friday, January 27, 2017

Airplane Wars Has A Battle Going The 737-10X

Boeing needs to stop the bleeding at the single aisle level. Confronted with costs it proposes the Max 737-10X as the weapon of choice hoping to supersede the A-321 NEO success.  230 seats with a higher stance protecting its tail during take -off and the CFM basis for engines mounting. It could hang the CFM in a wider diameter improving fuel consumption. 

What is not known, is the multi billion dollar question. How far will it fly? The key statistic moves Euro-American airlines to the Max. Boeing hasn't set the target range even though it has built the paper airplane. The second question arises, will there be a “True Middle of the Market (MOM)” or is this a stop gap planning for the next ten years?

The MOM isn't dead having the 737 MAX-10X. Boeing will not violate the MOM market potential from its single aisle with multiple sizes fits all family of aircraft. Boeing is closer to building this 737-10X than a true MOM, as it has an immediate confrontation with the A321-NEO since it robs market share away from Boeing each month.  A stop gap shim is needed sooner rather than later and a 737-Max-10X could change the single aisle dynamics before any 737 expansion thoughts becomes a lost cause.

Boeing knows this and will announce soon, perhaps suggesting why there was no end of 2016 year announcement for a new MOM type. This concept is in motion will address building more value into the 737 family with a less expensive R&D costs associated with any new clean-sheet aircraft. The True MOM will wait. If a new dual aisle follows after the 757 it becomes a 3.0 version. Therefore, a 737 Max-10X is version 2.5 coming from the single aisle class.

In order to win this battle with Airbus, a 737-10X must fly further and more efficiently than the A-321NEO, having the same passenger capacity. If they don't achieve a design superiority or customer appeal over Airbus, then Boeing must regroup its plan going 10 years out while Airbus keeps mopping up the large end of single aisle. Boeing will counter punch with a fighter’s chance in this match.