Thu, Dec 22, 2011
It's 737 MAX Vs A320neo In An All-Out Cage Grudge Match
We realize that neo Vs MAX sounds like it could be another
Matrix movie sequel, but in the aviation world it represents Boeing
and Airbus locked in a head-to-head competition for sales of their
re-engined narrowbody jetliners, with neither side seeming to claim
a clear advantage. Boeing IS playing a bit of catch-up, after
taking a year to decide whether to update the 737 or go to a
clean-sheet new design.
Boeing executives think the company will have an easier time
converting commitments to firm orders now that they have released
list prices and performance specs on the three versions of the 737
MAX it plans to build, according to an enterprise report from
Seattle television station KCPQ (Fox 13). The station reports that
Boeing CEO Jim Albaugh said recently that the U.S. planemaker is
"meeting Airbus in different campaigns around the world," and said
despite the late start, he feels that they've performed very well
in the four months since introducing the 737 MAX.
Teal Group analyst Richard Aboulafia said that the numbers are
currently split about 50/50 between the A320neo and 737 MAX, with
each company getting large orders from its loyal customers. Another
factor was the split order from American Airlines earlier this
year, which had been a Boeing-only carrier.
Airbus introduced the neo while Boeing was still making a
decision whether to re-engine the 737 or build a new airplane. The
AA order was seen as a catalyst towards pushing the company to the
upgrade. Albaugh says that the more-efficient 737-900 could
eventually serve as a replacement for the now-discontinued 757 on
95 percent of its routes.
The A320neo will cost between $84 and $106 million, and is
expected to enter service in 2012. The 737 MAX will be a bit less
at $78 to $101.7 million, and should be flying in 2017.
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