Boeing sees airline thirst for new mid-range Jetliner

Bloomberg

Boeing Co is seeing strong airline interest in a new mid-range aircraft on its drawing board, bolstering the case for its biggest potential product development of the next 10 years.
No current-generation aircraft are specifically designed for long flights within a region, like the seven-hour trek from Tokyo to Singapore, said Ray Conner, chief executive officer of Boeing’s commercial aircraft unit, told reporters at a briefing ahead of the Farnborough International
Airshow in the UK.
“There is clearly a market desire or need,” Conner said.
For more than a decade, Boeing has studied a series of aircraft options for addressing the so-called middle of the market — a relatively untapped segment where Europe’s Airbus Group SE is starting to extend its reach. But after intensive conversations with leading airlines and lessors, the US planemaker sounds increasingly confident that it’s close to a solution.
Boeing would probably use carbon-composite wings, new flight systems and other leading-edge technology, while attempting to use a streamlined production system to churn out the aircraft on a scale large enough to cover its costs and keep pricing affordable.
Developing Boeing’s first all-new aircraft since the 787 Dreamliner wouldn’t be cheap. Costs would easily range from US$10 billion to $15 billion, said Kevin Michaels, managing director of Aerodynamic Advisory in Ann Arbor, Michigan.

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The planemaker sees potential to create a new, larger market beyond the routes flown by the 757, its largest narrow-body jet, which has been out of production for more than a decade. Airlines want planes that seat between 200 and 270 travelers, with the range to fly between 4,500 and 5,100 nautical miles (8,330 kilometers to 9,450 kilometers), Conner said. Airbus has gained sales by pitching its A321neo as the 757’s heir.
Boeing’s customer discussions mirror the enthusiastic airline response to a survey on the potential mid-range jet released by Bank of America Corp last week, Conner said. About 89 percent of operators said they were interested in purchasing such an airplane, with 82 percent saying they’d like the aircraft before 2023, Ron Epstein, a Bank of America analyst, said. The proposed Boeing plane shares the 787 Dreamliner’s potential to open up flights not yet contemplated by airline route planners, John Wojick, the planemaker’s senior vice president for sales, said Sunday. “We can change the world, just as we did with the 787.”

Boeing signs US$3.39billion deal with Xiamen Airlines

Bloomberg

Boeing Co signed a memorandum of understanding to sell 30 aircraft to China’s Xiamen Airlines in a deal worth US$3.39 billion at list prices.
The order is for 737 Max 200 planes to the Xiamen, China-based carrier. The airline, which is already a 737 Max customer, sees the Max 200 as a fit for its low-cost subsidiaries, including Jiangxi Airlines and Hebei Airlines, according to a statement issued at the Farnborough Airshow Monday.
The purchase will help Xiamen Airlines, a subsidiary of state-backed China Southern Airlines Co., broaden its fleet to 200 airplanes by the end of the decade as it looks to expand regionally with the new 737 Max. Xiamen Airlines currently operates an all-Boeing fleet of more than 140 airplanes including six 787 Dreamliners, 130 Next-Generation 737s and four 757s, according to the statement.
The finalization of the agreement requires approval from the boards of Xiamen Airlines and China Southern, as well as the Chinese government, according to the statement.
The planned plane purchase is part of a US$10 billion order announced in December for China Southern and Xiamen Air.