WSJ: Boeing has begun development of a successor to its most popular airplane

Boeing has begun work on a new narrow-body airplane, a potential successor to its most sought-after 737 MAX jetliner, the WSJ reported, citing sources. The company is discussing a possible engine with Rolls-Royce and designing the cabin. Boeing is trying to regain ground lost due to lingering safety issues and increased competition from Airbus, the newspaper said. However, creating an entirely new airplane takes decades and costs tens of billions of dollars.

Aircraft maker Boeing has begun development of a new narrow-body airplane that should eventually replace the 737 MAX, The Wall Street Journal reported, citing sources.

According to the newspaper, earlier this year Boeing CEO Kelly Ortberg met in the UK with Rolls-Royce representatives to discuss a possible engine for the future airliner. Boeing, for its part, is developing a cockpit for the new airplane. But the project is at an early stage, and final decisions have not yet been made, the publication noted.

Boeing told the WSJ that it remains focused on its recovery plan: among its priorities are fulfilling accumulated orders for about 6,000 airplanes and certifying previously announced models.

The company's shares showed almost no dynamics on the pre-market in the USA. Trading a day earlier ended with a 1.9% drop. Compared to the beginning of 2025, the securities are in the plus by 22%.

The 737 MAX entered the market in 2017, but flights around the world were suspended in 2019 after two disasters that killed 346 people. These tragedies hit Boeing's profits, led to lawsuits, investigations and a criminal case by the U.S. Justice Department, Reuters writes.

The U.S. Federal Aviation Administration (FAA) has authorized the resumption of flights in 2020, during a pandemic. Last Friday, September 26, the regulator said it would allow Boeing to again independently issue airworthiness certificates for part of the 737 MAX. That authority was revoked in 2019 after a second crash in Ethiopia.

However, regulatory pressures persist. In early 2024, the FAA limited production of the 737 MAX to 38 airplanes per month after an incident involving a new Alaska Airlines jetliner that had a skin panel torn off in flight. An inspection revealed that four bolts were missing. The company now plans to ramp up production of the 737 MAX to 42 airplanes per month by the end of the year.

Boeing needs to increase production of the 737 MAX to return to positive cash flow, but the company doesn't want to rush it. "If we have to wait a month, we'll wait. On a business scale, a month won't make a difference, but the loss of stability will make a difference," the Boeing CEO said in mid-September.

Against the backdrop of the company's problems, its competitor Airbus was strengthening its position: the European manufacturer became the leader in terms of deliveries and order volume. Despite the fact that A320 production started two decades later, they are on par with Boeing 737 in terms of deliveries, WSJ notes.

Boeing traditionally announces the development of new models long before launch to attract airlines, secure supplier commitments and generate investor interest, WSJ writes. However, creating an airplane "from scratch" can take more than a decade and cost tens of billions of dollars. Typically, manufacturers wait for at least a 15% improvement in fuel efficiency before launching such a project. This can be achieved through a new engine architecture, lighter materials or radical changes to the airframe, the newspaper says.

Rolls-Royce, which began testing a new engine in 2023, does not yet have customers for the technology. According to the company's CEO, the engine could improve fuel efficiency by 10% compared to the A320neo.

A deal with Rolls-Royce would be a major change for Boeing, which has been fitting CFM International engines - a joint venture between GE Aerospace and Safran - to the 737 for about 40 years, the WSJ noted. The first airplane in the 737 family came out back in the 1960s.

Boeing has signed several new major airplane contracts in recent months. For example, last week Boeing received an order worth more than $8 billion from Uzbekistan. Another "huge order" may come from China: Washington and Beijing are finalizing negotiations about it, the U.S. ambassador said. In addition, one of the world's largest airlines, Turkish Airlines, agreed in September to deliver 75 Boeing 787 airplanes and came close to purchasing 150 737 MAX airplanes.

In late August, Boeing also announced a major order from South Korea's national and largest airline, Korean Air. The value of the order at catalog prices could be about $20 billion.

This article was AI-translated and verified by a human editor