MAX impact on Boeing NMA beginning to emerge

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Introduction
May 2, 2019, © Leeham News: There was indication last week Boeing’s decision on whether to approve the New Midmarket Airplane program will slide. CEO Dennis Muilenburg said on the company’s first quarter earnings call the focus is returning the grounded 737 MAX to service. A decision on authorizing the sales force to offer the NMA for sale is ambiguous. For the first time, targeting 2025 for entry into service appears to be acknowledged as iffy. The statements confirm LNA’s analysis and our reports that the 2025 EIS is unlike.
Summary
  • Advanced manufacturing is key to NMA production, but all elements need to fall into place—a “production moonshot.”
  • For more than a year, LNA and others predicted the NMA EIS in 2025 is not possible.
  • Engines won’t be ready by 2025 EIS. See here and here from March 2018.
  • Latest woes from CFM on the LEAP add to uncertainty; CFM is the favorite for NMA. See here.
  • Engine selection by Boeing put off until after MAX problems solved, grounding lifted.
  • Authority to Offer for sale at Paris Air Show unlikely and 2025 EIS now in doubt.

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