Boeing has started working on a 737 Max replacement - WSJ

Boeing has started working on a 737 Max replacement - WSJ

Boeing has initiated the development of a new single-aisle aircraft to succeed the 737 MAX, according to sources familiar with the matter. This move comes as Boeing seeks to recover business lost to rival Airbus during its series of safety and quality problems. The new aircraft is in the early stages of development, with plans still taking shape.

The decision to develop a new aircraft marks a shift for Boeing, which had previously put new aircraft development work on the back burner while addressing its multiple challenges. Boeing's Chief Executive, Kelly Ortberg, has been focusing on fixing the company's long-running quality and manufacturing problems, and shoring up its balance sheet. However, the company is now looking ahead to future growth opportunities.

Ortberg has not publicly detailed any plans for a 737 successor, but he has indicated that Boeing is evaluating the market and advancing key technologies to position the company for future success. The company is also working to improve its financial performance, which will free up capital to focus on new product development.

Boeing's aircraft-development programs have struggled in recent years. The 737 MAX entered commercial service in May 2017, but two deadly crashes involving the jets resulted in a global grounding of the fleet in 2019. The company later dropped plans to build a new midsize aircraft and is years behind on a new upgrade for its 777.

Despite these setbacks, Boeing is now signaling a return to form with the development of a new narrow-body aircraft. The company has been designing the flight deck of the new aircraft and is considering a new engine from Rolls-Royce. The new engine could offer a significant improvement in fuel efficiency compared to current engines on Airbus's A320neo.

The development of a new aircraft is a long-term project for Boeing, with estimates suggesting it could take over a decade and cost tens of billions of dollars. However, Boeing executives believe that a cutting-edge plane design could power the company's business for the next few decades.

Boeing's plans represent a significant investment in the future, and investors will be closely watching the company's progress. The success of the new aircraft will depend on a number of factors, including the company's ability to address its ongoing quality and manufacturing problems, and its ability to secure customer commitments and supplier partnerships.