These Are The Economics That Led Boeing To Create The 737 MAX


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Learn About The Economic Reasons That Led Boeing To Create 737 MAX
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We are sure that all of you are aware of the fact that the notoriously famous 737 Max has been grounded for about two months now and has become a liability for Boeing. However, this was not always the case. So, what made Boeing design this particular airplane? You will find a detailed answer in the featured video that comes from Wendover Production.

Learn About The Economic Reasons That Led Boeing To Create 737 MAX

Wendover Production, a famous YouTube channel, explains in detail the economics that was and is present behind this ill-fated airplane in today’s video. Part of the reason is that the airlines would rather have a cheap and small plane as opposed to an expensive and super-efficient small plane.

In a nutshell, 737 from Boeing was actually just a small plane that was cheap. It cost $89 million only, and now the nightmare plane was once considered a great deal by many. Why? Well, Boeing had perfected the 737 manufacturing process and was able to offer a cost-effective deal on the planes. At their peak, Boeing was actually making one 737 every fourteen hours.

Change is inevitable, and soon enough airlines began undergoing a change in how they make use of their fleet and started opting for planes such as 737 for longer flights. Furthermore, the jet fuels had reached their all-time high during 2011 and fuel efficiency became the key factor for the airlines.

Moving forward, in December 2011, Boeing’s competition Airbus introduced its re-engined A 320 Neo. Sadly for Boeing, the model sold quite well. Airlines wanted a smaller but efficient plane, and during July 2011 American Airlines ordered a massive number of Boeing’s redesigned 737.

Learn About The Economic Reasons That Led Boeing To Create 737 MAX

However, by then the new 737 had not been announced. So, what happened and how did it happen? You will have to watch the video below to find out actually because Wendover Production has done a tremendous job! Check out the video and let us know what you think of it!

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