Boeing's continued accelerationBy IAG | August 6th, 2012 | Posted in Aviation News | No Comments
Last week was yet another one filled with good news. Xiamen Airlines agreed to purchase 40 737-800s. The airline plans to use the airplanes for more international routes to meet growing passenger traffic in Asia-Pacific and China. The order, valued at $3.5bn at list prices, requires Chinese Government approval and Boeing will work with Xiamen Airlines to obtain approval. After that time the order will be posted to Boeing's Orders & Deliveries website.
In addition, SilkAir announced a commitment to order 31 737 MAX 8s and 23 Next-Generation 737-800s. When finalized, the agreement will be worth $4.9bn at list prices.
Any week that comes with over $8bn in orders has to go down as a good one. For Boeing the interest in MAX is just what they need. But the interest in the NG has to also be welcome. Though we suspect the NG orders might yet get converted to MAX as that airplane's definitions grow more certain. Certainly 2012 is the year that MAX is starting to catch up on neo. The SilkAir is especially welcome because this the first MAX turn over of a an Airbus customer.
Of interest though is that we see yet another 737 order and no take up of the -700 or -7 MAX. This follows the pattern at Airbus where A319ceo and neo orders have been few. Does this mean the market has moved or no longer exists? our view is that the market exists but the airlines no longer see these airplanes as efficient in the category. The sub 150 seat market is increasingly likely to see new entrants.