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The Boeing 737 is one of the most successful and iconic airliners of all time. It’s been produced in four generations since the 1960s, with each family becoming larger, more advanced, and more efficient than the last. First was the 737 Original (737-100/200), the 737 Classic (737-300/400/500), the 737NG (737-600/700/800/900/900ER), and the 737 MAX. The 737 MAX is the newest variant of the 737 family, and while it’s been controversial due to its tragic accidents, it’s also the second-most successful 737 generation.
The 737NG is the most successful 737 generation, and the changes to create the 737 MAX were minimal compared to those of other 737 generations. The 737 MAX is incredibly popular despite the relative lack of upgrades, and except for the engines, is virtually the same aircraft. Therefore, how much is Boeing charging for this refreshed 737, and how does this impact the 737 MAX’s position in the market compared to its predecessors?
Overview Of The Boeing 737 MAX
The Boeing 737 MAX is the latest generation of the 737. The 737 MAX 7 succeeds the 737-700, while the 737 MAX 8 succeeds the 737-800. The 737 MAX 9 succeeds the 737-900ER, and the 737 MAX 10 is a new stretched variant to compete with the Airbus A321neo. There was no successor to the 737-600 due to the poor sales of that variant. While Boeing has always developed successors to prior variants, the 737 MAX 8 and 737 MAX 9 are direct refreshes of their 737NG variants. The 737 MAX 7 was developed as a simple shrink of the 737 MAX 8, rather than a refresh of the more unique 737-700.
The 737 MAX comes with the CFM LEAP-1B, as opposed to the CFM56-7 found on the 737NG. It also comes with new split-tip winglets named “Advanced Technology”, new LCD screens in the cockpit reminiscent of those on the Boeing 787, a revised tailcone, a taller nosegear, and the Boeing Sky Interior as standard. Compared to prior 737 generations, this is a short list of upgrades. For comparison, the 737NG came with revised engines, a new wing, a fuselage stretch in all variants, a glass cockpit, and a bump in maximum takeoff weight compared to the 737 Classic.
The 737 MAX 8 and 737 MAX 9 share the same fuselage as their respective 737NG variants. The 737 MAX 7 is a direct shrink of the 737 MAX 8, whereas the 737-700 featured significant structural differences with the 737-800 and is also smaller than the 737 MAX 7. The 737 MAX 10 is a stretch of the 737 MAX 9 that also features a telescoping main landing gear to boost field performance. While it’s not a successor to any 737NG variant, it essentially replaces the 737 MAX 9 as an A321neo competitor due to its superior operating economics.
Pricing For The Boeing 737NG And 737 MAX
The 737 MAX is a light upgrade to the 737NG, but Boeing still prices the aircraft at a significant premium compared to the 737NG (which is no longer on sale). Exact pricing details vary by airline and are kept secret, but the list price for a Boeing 737 MAX 7 (which is much higher than real sale prices) is $99.7 million, whereas the 737-700 was priced at $89.1 million. The 737 MAX 8 is listed at $121.6 million, which is higher than both the 737-800 ($106.1 million) and the 737-900ER ($112.6 million).
The 737 MAX 200 (a revised variant of the 737 MAX 8 to seat more passengers) is priced at a slight premium of $124.8 million, while the 737 MAX 9 is listed at $128.9 million. The 737 MAX 10, meanwhile, is priced at $134.9 million. While it is the most expensive variant of the Boeing 737 ever, it’s priced significantly lower than the competing Airbus A321neo, listed at roughly $145.6 million.
List prices mainly exist to advertise the values of large aircraft orders, and seldom have any additional meaning. Most aircraft are sold at roughly 40% to 60% of the list price, but this figure fluctuates depending on the nature of the order and the market demand for the airliner. Most A321neos are sold for prices relatively close to their list price, while the 737 MAX 7 (which has been far less popular) is sold for far below its list price due to a comparative lack of demand and few orders.
Why Can’t The Boeing 737 MAX Be Powered By Any Other Engine Type?
Why the 737 MAX uses only the LEAP-1B: Boeing’s design limits, certification rules, and engine geometry make any other powerplant impossible.
The Boeing 737 MAX Versus The Boeing 737NG
While overall sales figures are a solid method to gauge demand, another metric to observe is used market value. Regarding the first statistic, Airbus has sold 4,077 A320neos, while Boeing has sold 2,999 737 MAX 8s. With the prior generations, Airbus sold 4,765 A320s, while Boeing sold 4,991 737-800s, an excellent figure considering that the A320 entered service roughly a decade earlier. The higher demand for the 737-800 is also reflected in the second-hand market, as 737-800s are more valuable than A320s.
There is a lower supply of pre-owned 737-800s than A320s, but the 737-800 has also historically been more popular than the A320. The A320 had a higher list price than the 737-800 (at roughly $110 million). However, the 737-800 had more seats than an A320. It had a longer range than the A320-200, yet the aircraft was also slightly lighter than the Airbus. It burned more fuel, but it had more seats to spread these costs. Much of the A320’s success over the 737NG was due to the A321, for which Boeing lacked an effective answer.
|
Airbus A320 Variants |
Sales |
Boeing 737NG Variants |
Sales |
|---|---|---|---|
|
Airbus A318-100 |
80 |
Boeing 737-600 |
69 |
|
Airbus A319-100 |
1,486 |
Boeing 737-700 |
1,130 |
|
Airbus A320-100/200 |
4,756 |
Boeing 737-800 |
4,991 |
|
Airbus A321-100/200 |
1,784 |
Boeing 737-900/900ER |
557 |
|
Total |
8,106 |
6,752 |
The story of how the Airbus A321neo has essentially beaten the 737 MAX family is well documented at this point, but the bigger story is that of the A320neo compared to the 737 MAX 8. Both aircraft are essentially the same as their predecessors, and the A320neo features even fewer changes from the A320-200. Why is it, then, that the A320neo now holds the sales advantage over the 737 MAX 8, while the 737-800 ran away with sales in the past?
The Problem With The 737 MAX
The Boeing 737-800 held many advantages over the Airbus A320-200, and its prices were comparable to the A320. But the new engines (CFM LEAP-1A and Pratt & Whitney PW1100G) significantly improved the A320’s fuel burn and range. It also boosted its field performance, and it was a cheap program for Airbus. The 737 MAX, however, was more difficult to develop. This resulted in compromises that hampered the CFM LEAP’s fuel efficiency. The 737 MAX 8 and the A320neo are now closer than the A320-200 and the 737-800.
The CFM LEAP-1B was made smaller to accommodate the 737’s lower stance, and while it’s lighter than the CFM LEAP-1A, it still burns more fuel at cruise. The engine is simpler and less powerful than the CFM LEAP-1A, and the 737 MAX as a whole remains lighter than the A320neo family. In general, however, the 737 MAX 8 burns more fuel than the A320neo, and while it still has a longer range, the A320neo is capable enough for most airlines.
|
Specification |
Airbus A320neo |
Boeing 737 MAX 8 |
|---|---|---|
|
Typical Seating |
150-166 |
160-172 |
|
Maximum Seating |
194 |
210 (737 MAX 200) |
|
Engines |
CFM LEAP-1A Pratt & Whitney PW1100G |
CFM LEAP-1B |
|
Maximum Takeoff Weight |
79 tons |
82.6 tons |
|
Range |
3,500 NM (6,500 km) |
3,550 NM (6,570 km) |
The advantages that the 737 MAX 8 holds over the A320neo are the same as those that the 737-800 enjoyed over the A320-200 (more seats, a lighter structure, and superior capability), but the two aircraft are far closer. Data is limited given the young age of both aircraft, but it’s estimated that the A320neo is valued similarly to the 737 MAX 9, which makes sense given that the two planes are virtually equals now. When you add in commonality with the excellent Airbus A321neo, it makes sense that the A320neo is now outselling its direct rival.
This Is How Powerful The Boeing 737 MAX Is
Like most A320neos, the MAX is powered by the CFM International LEAP engines and enjoys high flying sales.
Why Boeing Made The 737 MAX
Boeing planned to develop a clean-sheet narrowbody to replace the 737 in the 2010s, but the A320neo proved to be a hit when first launched. The company was in a precarious financial situation due to cost overruns with the Boeing 787 program, and customer demand was high for a refreshed 737. American Airlines, the first disclosed customer for the 737 MAX, publicly ordered the aircraft before the 737 MAX was officially launched. This was the plane that Boeing customers wanted.
The 737 MAX’s engines are compromised compared to those on the A320neo, but this slight fuel burn disadvantage can be offset through purchase price and airline scheduling. While on the surface, it’s surprising that the A320neo is faring better against the 737 MAX 8 than the aircraft’s predecessor, the real issue for Boeing is the A321neo. This aircraft has virtually limitless demand, while the 737 MAX 9 is smaller and is more expensive to operate per seat.
The 737 MAX 10 promises to solve these issues, and what Boeing is offering looks promising. However, over 7,000 A321neos have been sold, compared to just over 1,200 737 MAX 10s. Had the 737 MAX 10 been launched earlier and had it entered service when Boeing promised, the aircraft would have become far more popular. In turn, this would have made the 737 MAX 8 more popular due to commonality with this desirable variant. Instead, Boeing is struggling to get the plane certified, while Airbus continues to run away with A320neo and especially A321neo sales.
