23 Mar 2017
Thought Leadership: ISTAT Americas Boeing MoM project
In the sixth of our Thought Leadership series Ameya Gore AVP-Asset Management last week attended the ISTAT Americas conference in San Diego and discusses Boeing MoM (Middle of Market) project.
Boeing MoM project (what ISTAT says):
The Middle of Market segment was an important topic being discussed at the ISTAT americas with Airbus showcasing the A321 to be the answer to this segment.
- Boeing did show significant indications that the Boeing 737 Max 10 product will be coming into the market and that they are focussed on getting that product through certification. tonal
- However, at the other lessor and appraiser panels, the general view was that the A321 is a more suitable product in that segment.
- There is a void created by the B757 phase out which is not being adequately addressed and the 190-280 seat segment is not being addressed by any of the current Boeing products.
- The A321 is ideally the answer, at least for now.
Ameya Gore commented “I agree with the views being presented here on this subject. Historically, the B757 and 767 programs have been successful in catering to the middle of market segment with the ideal range and passenger pay load capacity that was demanded in this segment. However, as the narrow body jets have increased in size and capacity, this band has been shrinking. Today’s narrow body aircraft (A320 family and B737 family) are able to cater to the entire narrow body market spectrum but are also pushing the boundaries of the middle of market segment. But unless there is a viable alternative for the B757 and 767, there is likely to be a void which cannot be filled in simply by stretching the existing narrow body aircraft to the structural limits. The B787-8 may be a larger wide body aircraft but can be toned down to be a good alternative to the B757 and 767 products. But the economics of the operation given the higher lease rentals may not make it the most suited option. So there would be a need for a complete new product to cater to this market.”
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