Following Southwest’s announcement that it had signed a firm order for 150 737Max aircraft, Boeing was brimming with confidence that it will split the narrrowbody market between the Max and the Neo. Speaking at the Reuters Manufacturing and Transportation Summit yesterday, Jim Albaugh, chief executive of Boeing Commercial Airplanes said: “We will have 1,300 to 1,400 firm orders by this time next year, certainly.”
Now that the design of the new 737 version has been finalized, based on the enduring popularity of the 737NG, Boeing has a right to be so confident. It has commitments for more than 900 airplanes from 13 customers, travel demand is up and airlines, specifically US carriers, are embarking on fleet renewal programs, all of which bodes well for the US manufacturer. For the moment however Airbus is still storming ahead on order for the A320neo aircraft and is likely to win the annual orders race.
As well as becoming the launch customer for the Max, Dallas-based Southwest has also ordered 58 737NGs. The airline has substituted 737-800 models for all of its existing 737-700 aircraft deliveries in 2012 and 2013. The first 737Max aircraft is expected to be delivered in 2017.
"Today's environment demands that we become more fuel efficient and environmentally friendly, and as the launch Customer of the Boeing 737 MAX, we have accomplished both," said Gary Kelly, Southwest Airlines Chairman, President, and CEO. "We are teaming up with our friends from Boeing to lead the industry in a way that makes both our shareholders and our Customers proud to associate with Southwest Airlines. Today's announcement will allow us to maintain our position as a low-cost provider in the years ahead."
With the Southwest Max order signed, Boeing chief predicts more than 1000 Max orders in 2012
