2017 then will be the year that the 737 MAX will be rolled out by Boeing. This updated and more fuel efficient version of the existing 737 will compete with the A320 neo offered by Airbus.
Boeing are claiming order commitments for 496 from 5 airlines but it isn't clear in the article whether these are cross-overs from existing 737 orders.
The most significant, albeit expected news is the selection of CFM engines (CFM being a joint venture between GE and Safran). The CFM Leap engine is already selected as an option on the A320 neo along with Pratt & Whitney's geared turbofan (GTF).
Elsewhere, Airbus are looking to pull the A320 neo forward by 6 months which would see an entry into service in 2015.
The A320 and the 737 compete in the 150 seater sector of a market expected to be worth over $2 trillion dollars over the next 20 years.
Disappointingly for me, Rolls-Royce's presence in this segment of the market will likely dwindle (until it can compete on a new aircraft), as A320 sales decline in favour of the 2 newer aircraft.
A rare slip-up in the strategy perhaps, which has seen it achieve great success over the last 20 years or so, but one that means that it has still not rectified the original costly failure to compete on the first version of the 737.
I managed to find the following segment from a 2005 business week article (www.businessweek.com: Rolls-Royce At Your Service ) which also includes a quote from Sir John Rose underlining his implemented strategy.
There's still work to do. Rolls-Royce's civil aerospace business is less profitable than GE's larger jet engine division, which chalked up margins of 21% for the first three quarters of this year, vs. 12% for Rolls in the first half. The British company suffers from not having an engine for the popular Boeing 737. Yet by broadening its offerings, Rolls has more than doubled its sales, to an average of 1,000 engines a year.
"If you don't get on the airframe or win a customer, it may be years before you have another opportunity," says Rose. (www.businessweek.com: Rolls-Royce At Your Service ).
Hmmm. Food for thought.
Related articles:
- www.businessweek.com: Rolls-Royce At Your Service
Earlier posts:
- Paris Air Show: Review
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