Why Boeing Needs to Make the NMA (New Midsize Airplane)

An artist's rendition of the Boeing NMA, which would more likely be called the 797 if launched (Leeham News).

In a time when designing new aircraft is more risky due to the pandemic we are in, the last thing Boeing would want to do is design a new aircraft. However in this case designing a plane such as the NMA would help Boeing in regaining their reputation in commercial aviation after the issues with the 737MAX. In this blog, I will talk about why the NMA can be a great investment for Boeing.

The Transcontinental Passenger Market

A Delta Boeing 757 at Seattle Tacoma International Airport. Currently Delta utilizes their 757/767s for transcontinental routes across the US, which would be the role of the NMA (Jamsheed Motafram).

As we work our way through the pandemic with air travel being predicted to be back to 2019 levels in 2024, it will be a while before more business travelers fly internationally. However, there are some market segments that are expected to recover sooner and one of the is the North American transcon market. Even prior to the pandemic, airlines such as Delta, United, Air Canada, and American have been using this market as a means to introduce more premium services making it feel more like long haul international travel. It’s also why United is betting on returning to JFK late February for flights to San Francisco utilizing their Boeing 767-300ERs. However most of these planes are either too old (Boeing 757/767) or even too large (Boeing 777/787 series) for this lucrative market segment. This resulted in Airbus upgrading their A321 series with the A321NEO and A321XLR taking advantage of this opportunity. Even Delta whom despite pivoting to Airbus in recent years is actually encouraging Boeing to move forward with the project. Lastly due to their relationship with Boeing, it would be a good fit for Alaska Airlines’ to go along with their A321Neos for transcon service to the east coast. This could result in Alaska selling off their A321Neo Series in the future and therefore become an all-Boeing fleet whenever the NMA enters service. I’ll go over more about this in a future post about why Alaska should consider the NMA. While the NMA will be a perfect fit for airlines to tap into this market, it would also help in the creation of more jobs for Boeing.

Jobs for Boeing in Everett

A Boeing 787-8 Dreamliner lands at Paine Field. With Boeing ending 747 and 787 production in Everett this year, producting the NMA could provide Boeing an opportunity to fill in the void for the future (Jamsheed Motafram).

As well as being a good fit for airlines to strengthen their transcon market, the next question would be where the proposed aircraft will be built? The answer would be none other than Everett, Washington. Due in part to Boeing moving all of their Dreamliner production to South Carolina this March, it would be a perfect opportunity for the state of Washington to make a deal with Boeing to manufacture the NMA in Everett. That way they can keep jobs in Washington state and still invest in working with local universities such as the University of Washington and Western Washington University as a pipeline for talent for Boeing. There would be ample space in the factory to build the NMA due in part to the Dreamliner and Boeing 747 ending production. But this would all depend on Boeing’s cooperation with the state of Washington and their ability to ease tensions in an already tumultuous relationship.

Conclusion

A Delta Boeing 757 takes off from Seattle Tacoma International Airport (Jamsheed Motafram).

In summary, Boeing can’t downplay the need for a middle of the market aircraft given how Airbus is already ahead of the game with their A321 series and in this industry, it’s adapt or die. The NMA gives Boeing the opportunity to get even with Airbus in this market segment. But what do you guys think? Should Boeing go forward with the NMA? Let me know in the comments below and keep looking to the sky!