Unraveling the Reasons Behind the Boeing 737 MAX Backlog

Boeing 737 MAX Versus Airbus A320neo: A Backlog Analysis

The Boeing 737 MAX, the latest generation of the second-most successful jet-powered airliner, competes closely with the Airbus A320neo. Although the 737 MAX enjoys substantial popularity, its sales figures are only 60% of those achieved by the A320neo. This discrepancy is also reflected in the deliveries, with Boeing delivering less than half as many 737 MAX aircraft compared to the A320neo.

With over 11,000 orders, Airbus has delivered 4,098 A320neo family aircraft, representing 36% of its total orders. In comparison, Boeing has delivered just under 2,000 737 MAX units out of 6,700 orders, translating to 28% of the ordered aircraft. Given their direct competition, the differences in punctuality and quantity are notable.

Overview of the Boeing 737 MAX

The fourth-generation Boeing 737 MAX succeeded the 737NG with only moderate updates, including advanced winglets, a revised tailcone, a revamped cockpit, added nose landing gear length, and CFM LEAP-1B engines. While the 737MAX line aims to pick up from its predecessor, changes remain subtle.

• The 737 MAX 8 is the most popular model with over 4,700 orders.
• The 737 MAX 10 follows with orders over 1,200.
• The 737 MAX 9 and 737 MAX 7 have sold fewer than 500 units each.

Impact of the 737 MAX Groundings

The grounding of the 737 MAX came following tragic incidents involving Lion Air JT610 and Ethiopian Airlines ET302 that resulted in loss of life, leading to a prolonged grounding from March 2019 until November 2020. The COVID-19 pandemic further contributed to the challenges with production halts and delivery changes.

The First Half of the 2020s

The FAA rescinded the grounding order in November 2020, permitting Boeing to resume operations. Although Boeing continued receiving orders, they concentrated on fulfilling existing commitments and lowering inventory before scaling production. Despite achieving a rate of 38 planes per month by December 2023, production growth faced hurdles.

Production Limitations on the 737 MAX

A fault during a flight led to a temporary grounding of the 737 MAX 9 in January 2024. Following this, Boeing acquired parts of Spirit Aerosystems to enhance quality control. The FAA’s restrictions further limited production to not exceed 38 units per month, affecting clearing backlogs.

Reasons Behind 737 MAX’s Lower Sales

The 737 MAX’s delay in deliveries stems from repeated disruptions in its supply chain. Additionally, its sales volume lags behind A320neo which holds over 11,000 orders since its 2010 launch, with the MAX receiving under 7,000 in the same timeframe. The A321neo’s exceptional per-seat operational efficiency propels the A320neo’s lead over 737 MAX.

Future Outlook for the 737 MAX

The Boeing 737 MAX remains competitive and shows promise despite previous issues. The focus on securing certification for the 737 MAX 7 and MAX 10 is essential moving forward. While a formidable presence persists in the aviation arena, further deliveries are anticipated as Boeing navigates the production challenges.