Boeing Examining The Possibility Of An All-New Jet By Middle Of Next Decade

Boeing is moving forward with a study of an all-new "Middle of the Market" jet that would enter service in the middle of the next decade.

Boeing Co. (NYSE:BA) has announced that it is going forward with a study of developing an all new middle jet that is likely to enter into service by 2025. John Wojick, who is the head of sales for Boeing, stated in an interview that the airline has had detailed discussions with its customers and concluded that the market for this type of jet is large enough for it to go ahead with the multibillion dollar investment.

However, the decision whether to actually go ahead with the launching of the jet will not likely be made until before the end of this decade, i.e. 2019. However, the fact that Boeing sees a good opportunity out there triggered the need to conduct a deeper study as to whether it makes strong business sense to go ahead with the business plan.

The reason why the propose and under designed aircraft is called the “Middle of the Market”  airplane, is because of the size that ranges from the 737 family to the size of the 787, which is the smallest wide body of the aerospace manufacturer.

Mr. Wojick said that the plane seating will be between 220 to 280 seats and the flying range will be between 4500 to 5000 miles. The plane is itself larger than the Boeing 757 and flies further than the 757, fitting it in the category of a domestic and regional airline. It could be used for regional flights in the US, China, and Southeast Asia as well.

The decision to launch the aircraft by the middle of the decade has to do with configurations that are being suggested require a higher thrust engine than those of conventional airline. Boeing’s financial resources retied to the 737 Max and the 777x planes, whose slots are full until the end of this decade.

There are several questions that are to be answered, some basic ones, such as what type of metal will be used, and whether it would be a single aisle jet or a twin aisle jet, and most importantly, where it will be built. It has invited some interest from American, Delta, United, as well as the Southwest, clearly suggesting that there is a market out there for the next generation commercial airplane.

The commercial airline is recommended to review the aspects to safeguard its credibility in the international markets. Boeing stock price ended the day at $142.80, a decline of 0.10% from the previous day.