Time is the key metric for this Boeing onslaught at the airshow. Both the NEO and the Max have had time in the marketplace under the operational condition and customers haven't missed the memo that the 737 Max beats the A320NEO. Viet Jet ordered 100 Max and 50 A320's in a head to head decision for single-aisle types. What this means is Viet Jet is leveraging both makers into the lowest price possible under a competitive environment and it already firmed its 100 737 Max ordered just only days after the show.
Timing may have sped along the finances and early firm order signing, but it does show Viet Jet has done its homework and the Max is a pretty good deal from initial costs through operational efficiencies beating the A320NEO. The important takeaway is that Boeing has become aggressive because it has a winner in the Max and other customers are watching this competitive drama unfold in the most lucrative single-aisle market.
Now the Farnborough play reflects Viet Jets signing for its Max. Airbus booked 304 A320's having a firm, MOU, or LOI designation. It is interesting to note, that too is almost a two to one Boeing advantage with its Max over the single-aisle NEO at the show over-all. Airbus by day four only had a total of 93 firm orders booked for all commercial product at that time.
It also is important to note, Boeing had booked 350 single-aisle and widebody orders at the show giving Boeing a four to one advantage with firm show orders. The Viet Jet confirmation for 100 Max increases Boeing's current market hold by a hundred more aircraft pushing the Boeing /Airbus show disparity above four to one sales ratio for this year's show. Boeing made serious headway over its market share status for single-aisle at the show and it could increase by year's end. In only two weeks we all should see the Boeing.com total 2018 order numbers within its publication.
Currently, Airbus has about a 1,000 unit lead over Boeing but the market trend from the show encourages Boeing for closing the gap in numbers by year's end. It will not make up the single-aisle shortfall with Airbus but Boeing will make Airbus nervous with this Farnborough order surge and may close the gap between the two giants by 500 units instead of 1,000 single-aisle order gap.
No comments:
Post a Comment