Boeing Co. (BA) has raised its expectation for improving the
fuel efficiency of its updated single-aisle 737 Max jetliner to
14%, up 1% from its most recent goal.
Boeing is riding a wave of demand for more fuel-efficient
jetliners from airlines who covet every ounce of fuel savings after
more than a decade struggling under the weight of fluctuating
energy costs.
Boeing has completed internal design audits on its updated jet
which will make its first test flight in 2016 and said the
integration of the engines and aerodynamic technologies allowed the
plane maker to increase its efficiency target. Keith Leverkuhn,
vice president and general manager of the 737 Max program, said on
flights of six-hours or more, about 3,000 nautical miles, the
efficiency improvement will improve even more by around 2%.
Mr. Leverkuhn said the jet, which adds new engines from CFM
International, system updates and extensive aerodynamic
improvements, is on track to be delivered to Southwest Airlines Co.
(LUV) in the third quarter of 2017. CFM is a joint venture between
Safran SA (SAF.FR) and General Electric Co. (GE).
Boeing 737 Max chief engineer Michael Teal said that efficiency
boost provides airlines an 8% operating costs advantage over its
Airbus counterpart, though both plane makers claim an efficiency
advantage over the other. Airbus is a unit of European Aeronautic
Defence & Space Co. (EADSY, EAD.FR).
With around four years to go before it delivers, Boeing has
already secured more than 1,600 orders for the jet from 28
customers, around twice as many as it had accumulated when it first
delivered its last major update for the 737 in late 1997. Airbus,
which launched its A320neo or new engine option, has received
nearly 2,400 orders for the jet, continuing a pitched battle
between the two jetliner rivals for market share for its
highest-volume programs.
Boeing is increasing production of its current generation of 737
to 42 jets per month next year, a record rate, and Mr. Leverkuhn
said as the company transitions to the 737 Max the company's
current production facilities in Washington state are sufficient to
meet current demand, expected to go even higher, and wouldn't
require new assembly lines that could potentially be outside of its
traditional manufacturing base in the Northwest U.S.
"With whatever [production] rate demand we've got...we're
capable here in Renton in managing that," said Mr. Leverkuhn of
Boeing's suburban Seattle factory.
The Wall Street Journal reported Monday Boeing was evaluating
its North Charleston, S.C. base as a potential production home for
its long-range 777X aircraft, which would enter service with
airlines around 2020.
Airbus also announced Tuesday it had surpassed 10,000 orders for
its A320 jetliner, the 737's direct competition. The milestone
comes little more than a year after Boeing announced it had
received its 10,000th order of all 737 models since the 1960s,
despite Boeing's two-decade head start.
Write to Jon Ostrower at jon.ostrower@wsj.com
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