Ultimate magazine theme for WordPress.

Boeing’s 737 Max was a scandal. It will be a success

However, the 737 is predicted to still stay on the right side of profitability – and with thousands of shipments to make up for that cost, compared to just hundreds for the larger aircraft, there are numerous ways to keep that promise, and to do so surpass.

The harsh truth in the aviation market is that airlines fear an Airbus that is unhindered by commercial competition far more than for the safety of the 737 Max – especially after years of scrutiny under the eyes of a newly empowered regulator. Given the ongoing delays, certification, and supply chain issues facing the only other serious competitor on the horizon, Commercial Aircraft Corp. from China’s C919, the risks of Airbus dominance are even greater.

The cost-cutting considerations that contributed to Max’s failure also play a big role. The stereotype among pilots is that Airbus planes are largely automated to make life easier for less experienced pilots, while Boeing gave the crew more control until they transitioned to Airbus PlayStation ergonomics with the 737 Max. If the model is indeed easier to master, even if after grounding the training requirements are now stricter, it is an important consideration in an industry headed for a projected shortage of around 34,000 pilots worldwide by 2025.

Travelers will no doubt swear that given its appalling history, they will never get on a 737 Max. Before choosing to fly or wait for another slot at the departure gate, passengers who are still squeezed into 28-inch seats will squeeze into the aircraft offered by airlines. Right now, they like the look of the Max. The rest of us get used to it best.

David Fickling is a Bloomberg Opinion columnist on commodities and industrial and consumer goods companies.

Quality journalism is not free. Please consider subscribing to Crain’s.

Comments are closed.