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Boeing OKs upgrades of 737 engines
BY MOLLY McMILLIN
The Wichita Eagle
Boeing on Tuesday officially launched a program to upgrade its 737 airliners with new, more fuel-efficient engines to be called the 737 MAX.
Boeing's board of directors gave the program a green light at meetings this week, the company said Tuesday.
And Spirit AeroSystems will be involved in the manufacture of the revamped airplane.
The family of single-aisle aircraft will be called the 737 MAX 7, 737 MAX 8 and 737 MAX 9.
Boeing has received order commitments for 486 airplanes from five airlines, including a recent order from American Airlines for 100 aircraft and options for 60 more.
Deliveries of the 737 MAX are to begin in 2017.
"Our customers have told us they want efficiency and they want it soon, and they want it with certainty," Jim Albaugh, president and CEO of Boeing's commercial airplanes division, said in a conference call with reporters Tuesday.
It's good news that Boeing has launched the program.
"With formal launch, Boeing can now get on and sell the 737 (MAX)," Robert Stallard, RBC Capital Markets analyst, said in a report.
Its surveys have shown that airlines are reluctant to switch from one manufacturer to another, he said.
"So we think most of Boeing's existing 737 fliers will be taking a serious look at the (MAX) for either fleet replacement or growth," Stallard wrote.
He expects orders for the plane to be on par with those Airbus has booked in the past nine months for its competing aircraft, the A320neo, Stallard wrote.
Airbus has taken more than 1,000 orders for its A320neo — an upgraded A320 with new engines — since it launched the program in late 2010.
"We see this as a potential positive catalyst for Boeing and its aerospace suppliers," Stallard wrote.
Boeing says its 737 MAX is expected to burn 16 percent less fuel that the Airbus A320 and 4 percent less fuel than the A320neo. It will also will offer 7 percent lower operating costs over the A320neo, because of the new engines.
The upgraded 737 will be equipped with CFM International LEAP-1B engines, have a more efficient structural design and lower maintenance requirements, the company said.
Spirit will build the 737 MAX fuselage, nacelles and pylons in Wichita.
The company has been working closely with Boeing's Renton, Wash., plant, where final assembly of the 737 is performed.
Spirit will be "true partners as they have been on the 737 NG (next generation)," Albaugh said.
Boeing's 737 is important to Spirit, which derives about half of its revenue from the narrow-body jet.
Boeing also is studying whether to perform final assembly of the 737 MAX in Renton or at other sites, Albaugh said.
The company will make a decision in the next few months.
With the 737 MAX, Boeing plans to limit the scope of the upgrades to keep it simple, Albaugh said.
"We're only going to touch the airplane that's impacted by the engine," Albaugh said, along with a couple other minimal "clean up" items.
Changes will be made to the wing and to the "side of body" joint to accommodate heavier engines.
Boeing wants to be sure the new variant is compatible with its current 737NG models.
"What our customers have told us is, 'Don't touch the cockpit,' " Albaugh said.
Boeing also has been aggressively working with biofuels. This year, it received approval to use a mix of biofuels in the engines of the 747-8 freighter.
The 737 MAX is expected to be able to use the same blending of biofuels to reduce reliance on fossil fuels and emissions, said Nicole Piasecki, vice president of business development and strategic integration for Boeing's commercial airplanes division.
Albaugh said he thinks most of its customers who have 737s on order will stay with the current 737 offerings.
But Boeing will work with those who may want to switch to the 737 MAX.
"We have contracts in place," Albaugh said. "At the same time, we want to make sure our customers are getting what they need."
Read more: http://www.kansas.com/2011/08/31/1995655/boeing-oks-upgrades-of-737-engines.html#ixzz1YmgUFlMx
BY MOLLY McMILLIN
The Wichita Eagle
Boeing on Tuesday officially launched a program to upgrade its 737 airliners with new, more fuel-efficient engines to be called the 737 MAX.
Boeing's board of directors gave the program a green light at meetings this week, the company said Tuesday.
And Spirit AeroSystems will be involved in the manufacture of the revamped airplane.
The family of single-aisle aircraft will be called the 737 MAX 7, 737 MAX 8 and 737 MAX 9.
Boeing has received order commitments for 486 airplanes from five airlines, including a recent order from American Airlines for 100 aircraft and options for 60 more.
Deliveries of the 737 MAX are to begin in 2017.
"Our customers have told us they want efficiency and they want it soon, and they want it with certainty," Jim Albaugh, president and CEO of Boeing's commercial airplanes division, said in a conference call with reporters Tuesday.
It's good news that Boeing has launched the program.
"With formal launch, Boeing can now get on and sell the 737 (MAX)," Robert Stallard, RBC Capital Markets analyst, said in a report.
Its surveys have shown that airlines are reluctant to switch from one manufacturer to another, he said.
"So we think most of Boeing's existing 737 fliers will be taking a serious look at the (MAX) for either fleet replacement or growth," Stallard wrote.
He expects orders for the plane to be on par with those Airbus has booked in the past nine months for its competing aircraft, the A320neo, Stallard wrote.
Airbus has taken more than 1,000 orders for its A320neo — an upgraded A320 with new engines — since it launched the program in late 2010.
"We see this as a potential positive catalyst for Boeing and its aerospace suppliers," Stallard wrote.
Boeing says its 737 MAX is expected to burn 16 percent less fuel that the Airbus A320 and 4 percent less fuel than the A320neo. It will also will offer 7 percent lower operating costs over the A320neo, because of the new engines.
The upgraded 737 will be equipped with CFM International LEAP-1B engines, have a more efficient structural design and lower maintenance requirements, the company said.
Spirit will build the 737 MAX fuselage, nacelles and pylons in Wichita.
The company has been working closely with Boeing's Renton, Wash., plant, where final assembly of the 737 is performed.
Spirit will be "true partners as they have been on the 737 NG (next generation)," Albaugh said.
Boeing's 737 is important to Spirit, which derives about half of its revenue from the narrow-body jet.
Boeing also is studying whether to perform final assembly of the 737 MAX in Renton or at other sites, Albaugh said.
The company will make a decision in the next few months.
With the 737 MAX, Boeing plans to limit the scope of the upgrades to keep it simple, Albaugh said.
"We're only going to touch the airplane that's impacted by the engine," Albaugh said, along with a couple other minimal "clean up" items.
Changes will be made to the wing and to the "side of body" joint to accommodate heavier engines.
Boeing wants to be sure the new variant is compatible with its current 737NG models.
"What our customers have told us is, 'Don't touch the cockpit,' " Albaugh said.
Boeing also has been aggressively working with biofuels. This year, it received approval to use a mix of biofuels in the engines of the 747-8 freighter.
The 737 MAX is expected to be able to use the same blending of biofuels to reduce reliance on fossil fuels and emissions, said Nicole Piasecki, vice president of business development and strategic integration for Boeing's commercial airplanes division.
Albaugh said he thinks most of its customers who have 737s on order will stay with the current 737 offerings.
But Boeing will work with those who may want to switch to the 737 MAX.
"We have contracts in place," Albaugh said. "At the same time, we want to make sure our customers are getting what they need."
Read more: http://www.kansas.com/2011/08/31/1995655/boeing-oks-upgrades-of-737-engines.html#ixzz1YmgUFlMx
