Beyond the MAX: Boeing Begins Early Development of Crucial 737 Successor

Boeing is reportedly in the initial phase of designing a new single-aisle aircraft intended to eventually replace the 737 MAX, according to a report published Monday by the Wall Street Journal, citing individuals familiar with the situation. This effort signals a long-term strategic move to regain market ground lost to its rival, Airbus, amidst a series of safety and manufacturing challenges.

The U.S. planemaker has commenced design work on the flight deck for the new narrow-body jet. Chief Executive Kelly Ortberg previously met with officials from Rolls-Royce Holdings in the U.K. earlier this year to discuss a potential new engine for the plane. Rolls-Royce, which has been testing a new engine prototype since 2023, is offering technology that could provide a more than $\text{10%}$ gain in fuel efficiency compared to engines used on the Airbus A320neo. Rolls-Royce officials stated they could begin engine deliveries as early as 2035. However, the aircraft's development is still in the early planning stages, and final decisions have not yet been made.

Boeing stated its recovery plan remains on schedule, with primary focus areas including the delivery of an approximate 6,000 backlogged commercial airplanes and completing the certification of aircraft models previously announced. The company noted that it is evaluating the market and advancing technologies to be prepared to launch a new product when the time is right.

This forward-looking development occurs while Boeing continues to manage regulatory scrutiny stemming from past incidents. The 737 MAX, which began commercial service in 2017, was grounded globally in 2019 following two fatal crashes that claimed 346 lives. The incidents led to legal action, multiple investigations, and a criminal probe initiated by the U.S. Department of Justice (DOJ). The Federal Aviation Administration (FAA) eventually lifted the grounding order in 2020.

More recently, the FAA imposed a production cap of 38 737 MAX jets per month in early 2024 after a cabin panel blowout occurred mid-flight on an Alaska Airlines jet, an incident later linked to four missing bolts. The Alaska Airlines event prompted the DOJ to initiate a new criminal investigation and declare that Boeing was not compliant with a 2021 deferred prosecution agreement, which followed the company misleading the FAA during the 737 MAX certification.

Last Friday, the FAA announced it would permit Boeing to issue airworthiness certificates for some 737 MAX aircraft beginning this week. This authority was originally revoked in 2019 after the second fatal crash of the model in Ethiopia. The regulator indicated this decision was made because it is confident the process can be handled safely, though it will maintain "direct and rigorous oversight."