Re: UA A321 ?

Date:         21 Sep 98 00:31:46 
From: (H Andrew Chuang)
Organization: Concentric Internet Services
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In article <airliners.1998.1446@ohare.Chicago.COM>,
Karl Swartz <kls@ohare.Chicago.COM> wrote:
>>>Yes, Boeing could have built an entirely new aircraft, but chose not to
>>>do so.  That reduced time to market and lowered costs (hence incresing
>>>profits and/or lowering price) for Boeing, while allowing much greater
>>>commonality for previous 737 customers.
>>And, let's not forget that they only expected to sell about fifty of 'em.
>>R&D had to be kept to a minimum. This was, after all, before airline
>Deregulation was approved by the US Congress in 1978.  Boeing didn't
>decide to build the 737-300 until two years later, in 1980, and its
>first flight came in 1984.  Far from being a serendipitious beneficiary
>of deregulation, the 2nd generation 737 was the first aircraft tailor-
>made for deregulation.

Totally agree.  If you check the B737 order history, for most part, the
first generation had not been a big seller for Boeing and was trailing
the DC-9 by a good margin.  In 1978, all of a sudden, sales of the
aircraft picked up dramatically.  I don't think it's a coincidence that
Deregulation in the US took place in the same year.

MD updated the DC-9 by stretching it (i.e., the MD-80) and was only
mildly successful in the market place.  Boeing updated the B737 and more
than made up for the mis-sized B727 replacement (i.e., B757).
Nevertheless, in retrospect, by leaving the 150-seat, trans-Continental
sector open, Boeing did allow Airbus a huge opportunity to move into the
single-aisle market.

Thus, comparing the second-genration B737 and the A320 is comparing
apples and oranges.  They don't even cater to the same market (but
there is some overlap).  The third-generation B737 is a more direct
competitor of the A320.