For Boeing plane, bigger really may be better – especially for Wichita

Boeing is looking at two new planes, and a decision on one of them could be coming soon that would be to the benefit of Wichita.

Boeing CEO Dennis Muilenburg said on a first-quarter 2017 earnings conference call Wednesday that the company is considering a stretched version of its new 737 Max 9, which flew for the first time earlier this month.

The so-called “Max 10” would put Boeing in a better position to compete against Airbus’ A321neo, which has maximum seating for 236 passengers compared with the Max 9’s 220.

Muilenburg said Boeing has had “encouraging conversations” with its airline customers about making a stretch version of the Max 9.

“We see encouraging momentum there, but we still have work to do there to finish up on the business case,” Muilenburg said.

If it were to proceed with the Max 10, Muilenburg said, he doesn’t “see this as a big needle mover” on Boeing’s research and development spending.

Boeing could have the plane to market in a 2020 time frame, he added.

It’s likely that Spirit AeroSystems would have a big part to play in a Max 10, given that its Wichita plant manufactures 70 percent of the 737’s structure, including the fuselage.

Boeing also is progressing on its examination for a middle-of-the-market airplane, essentially a replacement for the 757 that would fill the gap in terms of range and passengers between its largest 737 and its smallest 787.

“We haven’t arrived at a decision point yet,” Muilenburg said.

He said the company thinks if it proceeds with such a plane that it could enter service between 2024 and 2025.

And like the Max 10, he doesn’t see unreasonable development costs for a middle-of-the-market airplane, which some in the industry have taken to calling the “797.”

“We have the time and place to make the right, deliberate decision,” Muilenburg said on the call.

Boeing ended production of the 757 in 2004. It launched the airplane in 1979 as a more fuel-efficient alternative to its three-engine 727.

Boeing’s biggest 757, the dash 300, could carry as many as 280 passengers and had a maximum range of 3,110 nautical miles.

Muilenburg’s comments Wednesday came after the Chicago-based company reported first-quarter profit of $1.45 billion on revenue of $20.9 billion. That compared with profit of $1.2 billion on revenue of $22.6 billion in the first quarter of 2016.

This story was originally published April 27, 2017 at 7:01 AM with the headline "For Boeing plane, bigger really may be better – especially for Wichita."