The U.S. airplane maker, Boeing Co (NYSE:BA), announced plans to develop a new airplane for replacing its 737 MAX jetliner before 2030. With the increasing pressure from other airplane manufacturer and Chinese companies, the jet maker is eying potential opportunities.
While talking at an innovation summit, the CEO of Boeing, Jim McNerney, announced plans for a new jetliner with slightly bigger size than its current MAX jetliner, although the jet would have similar shape. He said,
“By 2030 we will have a new airplane. A good chance it will be a composite airplane. It will be slightly bigger there will be new engines. The current look of the planes (shape) won’t change dramatically.”
McNerney mentioned Commercial Aircraft Corp. of China Limited, Comac, as a serious competitor in the upcoming years considering its latest single-aisle aircraft, C919, likely to be available by 2018. Boeing is likely to use carbon-fiber composite material for the aircraft and the CEO added, “We will eventually compete by offering something at the same price that does a lot more.”
This plane is likely to replace the 737 MAX from Boeing Co (NYSE:BA). Airbus Group NV (EPA:AIR) is another competitor of Boeing with similar plans to launch fuel-efficient single-aisle aircraft upgrade. The European A320neo is threat to 737 MAX from Boeing and Airbus Group NV (EPA:AIR) received an order from the Indian airliner, IndiGo, for 250 A320neo at current transaction price of $25.7 billion.
Earlier, Boeing Co (NYSE:BA) received an order of 30 Boeing 737 MAX8 aircrafts from Monarch Airlines. The agreement allows Monarch to order additional 15 aircrafts later and the deal has an agreement price of $3.2 billion. The British airliner chose Boeing as its fleet replacement company in July this year. Boeing indicated that it would aim for quick upgrades instead of complete new designs that might take decades to come out.
This article has been written by Prakash Pandey.