Showing posts with label MoM. Show all posts
Showing posts with label MoM. Show all posts

7/27/2016

A321ceo vs. B737-900ER deliveries

After yesterdays order from Jetblue for 30 more A321 (15 x A32ceo and 15 x A321neo with the right to convert to the A321LR), the order from Air Asia for 100 A321neo's and the conversion from Norwegian, now taking 30 A321LR, I looked into the delivery breakdown of Airbus und Boeing's narrowbodies.
Airbus delivered 40% of their narrowbodies as the A321this year so far - Boeing delivered less than 10% of all their B737NG's as the B737-900ER version.
The jury is still out if the pressure for Boeing is big enough to be forced to launch a B737MAX-10 or a clean-sheet MoM aircraft. GE Aviation CEO still has problems with the business case, as one could read in one of the latest editions of Flightglobal (sorry, I have no link, saw it on hardcopy only).
Boeing said they still have time to decide what to do...

3/30/2016

No MOM!

You read it here first: there will (in all likelihood) be no so-called MoM.
After my last post a few articles underline what I wrote. Richard Aboulafia wrote  a commentary in the Aviation Week and Scott Hamilton just posted a story about notes from Buckingham Research, Bernstein Research and Goldman Sachs regarding Boeing and the MoM aircraft.
Goldman Sachs still thinks Boeing could develop MoM, but concludes that Boeing is in a lose-lose Situation here.
Bernstein thinks that MoM could be the "Mirage of the Market" rather than the "Middle of the Market".
Buckingham concluded that the market is not big enough to justify the development.



2/22/2016

Why I don't believe In MoM...


In the last couple of weeks a new discussion about the so-called „Middle of the Market“ or “MoM” aircraft broke out. Apart from that nobody really knows what this aircraft should look like (B757 successor or B767 successor or both, narrowbody or widebody, scalable to cover the B737 market or not?) or every potential customer wanting something different, I do not really believe in the launch of such an aircraft in the near future.

Why?

Airbus has no interest in such an aircraft. They have a good market position with their A321neo, especially the LR version and the future A330-800, although I don’t foresee large order volumes for that aircraft. For sure Airbus is studying the MoM, but (for now) for the pure purpose of looking into what Boeing could do and if and how Airbus would have to react to it.

Boeing would be the one to launch such an aircraft. But do they have to do it? Although the B737MAX has less orders than the A320neo, the amount of orders the B737MAX got is massive. The B737MAX8 is right in the sweet spot of the market and has a small advantage in costs per seat against the A320neo – if the LEAP-1B engine performs as advertised, what remains to be seen.

The B737MAX8 just had it’s first flight. the –MAX9 and the –MAX7 have to follow. So why unsettle your (potential) customers talking too much and eventually launching a new aircraft that would at least partly overlap with the B737MAX family?

Also, Boeing will probably feel a drop in cash flow during the transition of the B777 Classic to the B777X between 2020 and 2022, just when the MoM would need large sums of money for R&D spending.

But there is another aspect why I do not believe in a launch of MoM for a, say, 2024 entry