11/08/2013

Boeing B737NG order drain

Last week Boeing announced that production of the B737 will be ramped up from currently 38 copies per month to 42 next year (that was not new) and then 47 per month in 2017, when the B737MAX enters service. Boeing did not elaborate further if only MAX production will be higher from the start or if also the NG will see higher production meanwhile. But we can presume that a step of 5 more aircraft a month cannot be taken at once, so there should be a more or less gradual ramp up from 42 to 47 over a year or even more than that. That means that at least in the last year of full B737NG (before B737MAX enters service), Boeing has to sell even more B737NG's. I wonder how Boeing wants to manage this without substantial price cuts - even more substantial we are seeing today for