Boeing’s commercial strategic development plan for the rest of this decade was laid out in plain and simple terms today by Boeing Commercial Airplanes President and Chief Executive Officer Jim Albaugh. Speaking at the Goldman Sachs Global Industrials Conference in Boston on Nov 3, Albaugh said the decision to develop the 737 MAX, rather than the all-new NSA (New Small Airplane), enables Boeing to:
“We really have de-risked this decade” he asserts
- compete effectively with the A320NEO without losing mid-size market share.
- defers development of NSA until more competitive manufacturing capabilities (and although he didn’t specifically say it – propulsion, structures, systems and aerodynamic technologies) mature.
- Aims to enter service with MAX in 2017 – but possibly earlier.
- Is based on philosophy of under-promising and over-delivering, or the opposite of the 787.
- frees up more development resources for 777X improved 777
- frees up more development resources for 787-10X.
- Ramping-up 737, 747-8, 767/KC-46A, 777, 787 production rates (overall rising by 60% by 2014) to eat into backlog.