Boeing's 737 Max crisis likely means delay for New Mid-sized Airplane launch
Mired in crisis after two deadly 737 Max jet crashes, Boeing will likely scrub plans to move ahead with its New Mid-market Airplane program this summer, aerospace analysts say.
Boeing was widely believed to be on track to give its sales teams the "authority to offer" the NMA — dubbed the 797 — jet to customers at the Paris Air Show in June.
With efforts to manage fallout from the crashes underway, including a worldwide fleet grounding and suspended 737 Max deliveries, analysts expect Boeing to delay the first phase of its rollout for the Renton-made NMA.
"At this point, launching the NMA doesn’t seem like the smartest thing to do," said Dhierin Bechai, an aerospace engineer and analyst with AeroAnalysis. "Currently, Boeing has other things to worry about. I could imagine them being more focused on using the Paris Air Show to restore confidence in the Max."
A Cowen and Co. research team, led by aerospace analyst Cai von Ruhmor and airlines analyst Helane Becker, reached similar conclusions in their report on the implications of the jet maker's troubles.
"Boeing seems less likely to move forward with a decision to offer the proposed NMA until the Max crisis subsides," Cowen said.
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