Press conference
Jeff Smisek, CEO United
Jim McNerney, CEO The Boeing Co.
Boeing Photo.
Ray Conner, President Boeing Commercial Airplanes
Q&A:
Smisek:
Few little activity today.
Orders today
Airbus: CIT Aerospace, 10 A330 (five previously undisclosed); China Aircraft Leasing, 28 A320ceo, 8 A321ceo–MOU.
Boeing: Avolon (lessors), commitment for 20 737 MAX 8/9 and 10 737-800s. The MAXes are part of the previously announced 1,000 Orders and Commitments, so this portion is not new, but rather a public disclosure.
ATR: Nordic Aviation, one ATR 42-600; Air Lease Corp., two ATR 72-600s; LAO Airlines, two ATR 72-600s, TransAsia, six ATR 76-600s.
Mitsubishi: SkyWest Airlines, LOI for 100 MRJs
CFM: Juneyao Airlines (China), CFM56 for five A321s; Aviation Capital Group, LEAP-1A for 18 A320neo family.
Pratt & Whitney: Finalize previously announced engine selection for GTF for 40 A320neo.
Dominic Gates of The Seattle Times has this story in which he has the following observation:
Wyse revealed that Boeing, through structural efficiencies, has also beefed up the allowed maximum take-off weights for the three MAX variants.
Each is 5,000 to 7,000 lbs heavier than the maximum take-off weights of the current 737s.
That means each 737 MAX model, even though heavier than the corresponding current model of the 737NG, can either carry a heavier payload or carry more fuel and so fly farther.
This is good. But we’re hearing from airlines that runway performance may be worse than the 737NG. The airplane is heavier but the wing is the same and the engine thrust is still somewhat of a mystery. CFM International, maker of the LEAP-1B that will power the MAX, lists thrust on its website of 20,000-28,000 lbs without identifying the sub-types and thrust to which the engines will be applied.
These thrust ratings are similar to those now on the NG, rather than being increased to compensate for the increased weight.
One airline tells us that runway performance for the -8 MAX and -9 MAX is longer than the -800 and -900. (The airline is not considering the -7 MAX and doesn’t have the -700.) This, the airline tells us, makes the airplanes problematic at some airports it serves.
This illustrates the dilemma Boeing and CFM have with the physically-constrained 737. CFM could build any engine it wants that would get the job done. It has, after all, two LEAP engines in development for the COMAC C919 and the Airbus A320neo. But the 737 presents special challenges and CFM is constrained unless Boeing lifts the entire airplane with new main gear. But this would mean a new wing box and associated structural changes, adding significantly to the cost. And Boeing won’t to this.
There’s still a lot about MAX we don’t know. And many customers are also waiting for the information.
The mid-size twin-aisle battle
While a plethora of new entrants are nipping at the heels of Airbus and Boeing in the single-aisle market, the battle in the twin-aisle segment is strictly between the two behemoths.
The two OEMs differ on the size of the market by a wide margin. Airbus, in its 2011 20-year Global Market Outlook, the most recent available, forecasts a need for 6,525 twin-aisle airplanes: 4,518 “small” twin aisles and 1,907 “large” twin-aisles. Boeing, which does not publicly distinguish this segment, forecast a need for 7,950 twin-aisles. This is in the 200-400 seat segment (Airbus uses 210-400 for its forecast).
Given their methodology differences in the total market forecast, both nonetheless come to the same market share—24%–of the mid-size, twin-aisle segment.
The line-up is:
Boeing’s airplane strategy has shifted its focus to twin-aisle aircraft with the decision to proceed with the 737 MAX, says Nicole Piasecki, vice president of Business Development & Strategic Integration for Boeing Commercial Airplanes.
BCA has some critical tasks and choices ahead:
Although launching the 787-10 is considered by most to be a foregone conclusion, it hasn’t happened yet. And although Boeing has been showing some reasonably detailed concepts around about the 777-8X, a 350-passenger replacement for the 777-300ER, and the 777-9X, a 407 passenger aircraft, neither concept is firm—and, according to one airline fleet planner, it’s not even clear Boeing will do much more than simply re-engine the current 777-300ER.
Nonetheless, Piasecki showed a group of reporters the Boeing product planning in a pre-Farnborough Air Show briefing that clearly demonstrates Boeing has better market segment coverage than Airbus today or potentially in the future. (Click to enlarge.)