Boeing’s Downfall - Going for the MAX!!
Mentour Now!・20 minutes read
Boeing's decision to create the 737 MAX was influenced by the merger with McDonnell Douglas, Airbus's A320neo project, and pressure from key customers like American Airlines. This shift in strategy prioritized efficiency and long-term demand over being the first mover in the market.
Insights
- McDonnell Douglas executives at Boeing shifted the company's focus from engineering to investor appeal, altering the company culture significantly.
- Boeing's decision to pursue the 737 MAX project in response to Airbus's deal with American Airlines, abandoning plans for a new jet, showcases a shift in strategy towards efficiency and market demand over being the first mover.
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Recent questions
How did the merger with McDonnell Douglas impact Boeing?
The merger with McDonnell Douglas shifted Boeing's focus from engineering to investor appeal, altering the company culture.
What prompted Boeing to proceed with the 737 MAX project?
Airbus's launch of the A320neo in 2011 prompted Boeing to consider a response, leading to the decision to proceed with the 737 MAX project.
Why did Airbus opt for the A320neo project over developing a new aircraft?
Airbus calculated that developing a new aircraft would cost significantly more than re-engineering, leading them to opt for the A320neo project.
What was Boeing's strategy in response to Airbus's head start with the A320neo?
Boeing shifted its approach from being first to market to focusing on well-engineered, efficient designs with long-term demand.
How did American Airlines influence Boeing's decision to create the 737 MAX?
American Airlines, open to Airbus's offer of 200 A320s, prompted Boeing to abandon plans for a new jet and create the 737 MAX in response.
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Summary
00:00
Boeing's 737 MAX: Evolution and Decision-making
- Changes in Boeing post-merger with McDonnell Douglas impacted the creation of the 737 MAX in two ways: the decision to launch the MAX and the plane's development evolution.
- McDonnell Douglas executives taking key roles at Boeing shifted the company's focus from engineering to investor appeal, altering the company culture.
- Airbus's launch of the A320neo prompted Boeing to consider a response, leading to the decision to proceed with the 737 MAX project in 2011.
- Airbus's economic challenges in 2010, post-2008 financial crisis, influenced their decision-making regarding aircraft development.
- Development of new engine technologies by Pratt & Whitney and CFM prompted Airbus and Boeing to consider re-engineering existing aircraft or launching new models.
- Airbus calculated that developing a new aircraft would cost significantly more than re-engineering, leading them to opt for the A320neo project.
- Boeing's engineers devised a small wide-body aircraft with an elliptical fuselage cross-section, aiming for efficiency comparable to single-aisle jets.
- Boeing's New Light Twin Concept, a mid-sized twin-aisle design, was favored over a new single-aisle or re-engine of the 737NG.
- Boeing's decision to pursue a new aircraft design, the MAX, was announced in 2011, potentially entering service around 2020.
- Boeing's CEO's acknowledgment of Airbus's head start with the A320neo highlighted the shift in Boeing's approach from being first to market to focusing on well-engineered, efficient designs with long-term demand.
14:03
Boeing vs Airbus: American Airlines Deal Impact
- Boeing's strategy of being a second mover with a more efficient aircraft had previously been successful.
- Airbus intervened when Boeing delayed re-engineering the Airbus A320, targeting American Airlines as a potential customer.
- American Airlines, with an old fleet and financial need, was open to Airbus's offer of 200 A320s with options.
- Boeing initially doubted American Airlines would accept Airbus's offer due to a previous agreement.
- Boeing eventually abandoned plans for a new jet and created the 737 MAX in response to Airbus's deal with American Airlines.
- American Airlines signed deals with both Airbus and Boeing for 460 single-aisle jets in 2011.
- Boeing faced pressure from other customers like Southwest and United Airlines to re-engine the 737NG.
- Boeing's safety culture deteriorated post-merger, leading to issues with the 737 MAX and a need for cultural change.
