Aerospace behemoth Boeing Co. (BA, Financial) is officially taking the wraps off its 737 MAX 10 plane at the Paris Air Show later this month. Boeing has already come up with an initial design of the plane, which will be the company’s biggest edition of its best-selling single-aisle jetliner.
All eyes on the Paris Air Show
The 737 MAX 10 is expected to be officially unveiled at the Paris Air Show. These planes will carry 188 passengers with both first- class and coach seating. The plane was designed in response to Airbus’ (XPAR:AIR, Financial) A321neo, which happens to dominate the single-aisle aerospace market.
Besides the 737 MAX 10, Boeing plans to showcase the 737 MAX 9, which had its first flight in April, along with 787-10 Dreamliner. The 787-10 made its maiden test flight and is slated to enter service in 2018.
Boeing looks to launch new midsize airplane
The company is also planning to introduce midsize airplanes that carry between 220 and 270 passengers, known as NMA or New Midrange Airplane. As the name suggests, this plane is bigger than the 737 family but smaller than the 787 Dreamliner and is Boeing’s smallest twin-aisle plane. The NMA has two aisles so it can facilitate faster loading and unloading at gates.
The 787 Dreamliner did a great job of connecting new cities. Boeing Vice President and General Manager of Airplane Development Mike Delaney said the Dreamliner family aided airlines in connecting 140 new city pairs.
“We’re going to put an airplane in that space that has the economics that nobody can touch, and what it will do is open up the city pairs and the economics that nobody else can. That’s the part that [Airbus executives] don’t tell you about,” Delaney said. Â “The key to the NMA is we’re going to do exactly in that market what we did with the 787.”
Air traffic is expected to increase around 30% as new routes and city pairs that do not currently exist open up.
The company consulted as many as 57 airlines in regard to the NMA. A majority preferred the double-aisle design of the NMA. The company’s executives have hinted the new aircraft may be called the 797. What remains to be seen is whether the company can afford it.
Last word
The single-aisle 737 airplane could play a vital role in the company’s success in the coming years. Boeing remains hopeful and depends heavily on the production increase of the 737 so as to offset a decline in the 777 program until the 777X enters service in 2020. As per reports by Bloomberg, India-based airline Jet Airways (BOM:532617, Financial) is negotiating to buy as many as 50 737 MAX 10s, which would worth $5.6 billion. As far as NMA goes, Boeing’s research says it could create more routes than the 787 Dreamliner. For now, stay tuned for further updates from the air show.
Disclosure: I do not hold any position in the stocks mentioned in this article.
