Delta wants Boeing to develop the 797…and is dangling 200 aircraft orders as a prize.
Speaking to Bloomberg in New York, Delta CEO Ed Bastian said:
I do anticipate they will do it. I hope they will do it. We have a significant need between the retirements of the 757 and 767 fleets. That’s almost 200 aircraft over the next decade.
That’s quite an incentive, but does little to push Boeing right now, which still finds itself in the midst of a crisis over its 737 MAX program.
The MAX has diverted all of Boeing’s attention as engineers who had been working on the 797 program, officially called NMA (new midmarket airplane), have been re-assigned to get the MAX back in the air. Boeing’s 737 MAX program is was the largest source of profit and until that is back in the air, no decision will be made on the 797.
But Boeing’s pain has been Airbus’ gain. The European aircraft manufacturer has been locking up A321neo XLR orders, mid-range aircraft with a range similar to that of the Boeing 757. In the USA, American and JetBlue have already placed orders.
Even with an Airbus advantage, Bastian says he is in no rush to place an order:
Obviously Airbus is at the table and they are offering us product today, but we want to wait and see what Boeing can create. We’ll need to make some decisions relative to the Airbus fleet sooner, but we’re not going to make a big decision until we know for sure what Boeing is going to do.
CONCLUSION
Bastian’s patience over the 797 program must come as a comfort to Boeing. But don’t think Delta has any loyalty beyond securing the greatest value at the lowest cost. Perhaps one day Delta will be the launch customer of the 797…at a discount that would even impress Willy Walsh.
image: Delta
Boeing isn’t just focused on the MAX from an engineering standpoint, but even if they were at the development stage for the NMA where they would typically launch a new aircraft, they probably understand the PR implications of launching a new plane while another major type is still grounded.
Thanks to a focus on short-term gains, Boeing finds itself in a very awkward position now. They discontinued the 757 with no successor, they are having issues with 787 production, their NMA program is crawling as Boeing has been reluctant to kick if off to being with, aaaaand the 777X program is holding due to unexpected issues including a door blowing off during a hard manoevering test. And then there’s the MAX: a frankenplane based on a 52 year old design of what was originally meant to be a 1960’s regional jet. Now they expect it to hold 60% more passengers than the 707 (on which it is based) did and to fly to Europe from North America. This airframe was never meant to do that.
So, thanks to the MAX debacle, Boeing’s hands are somewhat tied at the moment. MAX was meant to be Boeing’s money tree, cheaply designed, quickly produced and easy to sell. Instead, it’s been a giant drain. Since that’s where they have all their money, it’s all hands on deck to fix the program. And that means that everything else is pretty much on hiatus, at least as future development goes. Meanwhile, Airbus is absolutely devouring Boeing’s breakfast, lunch and dinner. Yeah, there was the A380. But that can be sold as a prestige item. The rest of Airbus’ lineup is very strong, from the A220 to the versatile A320 series on up to the A330 and A350 series. They pretty much cover all the bases while Boeing chases it’s tail.
And it’s all because the friggin’ bean counters in Chicago prodded the company to pursue that sweet, sweet, short-term gain at the expense of the company’s long-term health. But hey, Wall Street looooved them. Until they didn’t. Short-sighted as hell. If Boeing behaved like this 50 years ago, they would be little more than a footnote in aviation history.
Spot on and so well said!
What year did Delta last order Boeing planes?
Actually, Delta is in the market for some 15 year old used 797’s which it intends to keep for 20 years.
Spring of 2017.