The Boeing Co. is so confident of the potential of its smallest commercial airplane, the 100-seat twinjet 717-200, that it is modernizing its assembly line and processes to make the airplane more efficiently.
Some analysts say the 717’s major defect is that it lacks commonality with other airplanes in the Boeing family. Boeing says the 717’s lower operating costs, even over just a few years, override commonality benefits of rival models.
The 717 uses advanced flight deck technology like that of the 777, Boeing notes.
“This is at least a 1,000-airplane program,” said Jerry Callaghan, director of 717 program development.
Callaghan pointed to a chart showing other Boeing models that sold slowly at the start. “We look back at other successful programs that had modest beginnings,” Callaghan said. He emphasized that if a lot of carriers buy a handful of the airplanes, it will be quite profitable.
Now that some customers are using the 717, he sees interest picking up.
Boeing Chief Executive Phil Condit and Alan Mulally, president of commercial airplanes at the aerospace giant, have pledged the company’s full support for the 717 program. It was developed as the McDonnell Douglas MD-95. (Boeing acquired McDonnell Douglas in 1997.)
Those 130 orders and 125 options come from launch customer AirTran Airways as well as Trans World Airlines, Pembroke Capital Ltd. and Bavaria International Aircraft Leasing Co. Hawaiian Airlines also says it intends to buy 13 717s and take seven options. Some analysts say a show of strength for the 717 will be an order by a large, healthy airline with a high profile.
The 717 competes with the Airbus A318 as well as proposed models by Fairchild, Bombardier and Embraer. Some analysts give the A318 an advantage because it is compatible with other Airbus planes, while the 717 requires flight-crew training. The A318, however, is a longer-range, heavier airplane that is less efficient on short routes. While the A318 is a 100-seater, Boeing sees it as a competitor to its longer-range 737-600.
The 717’s list price is $31.5 million to $35.5 million, and the A318 carries a price tag of $35.8 million to $38.8 million.
Boeing expects to sell the 717 to carriers around the world to replace aging DC-9s, 737s and Fokkers, and sees a market for more than 2,000 aircraft in this class in the next 20 years.
It is intended for use on runs of less than 1,500 miles, perhaps 8 to 10 one-hour flights of 300 to 500 miles each per day.
A typical route would be connecting cities up and down the East Coast or major European or Asian cities.
The 717 is similar in size and configuration to the DC-9 series. Coach class has five seats per row, and overhead bin space is the same as on large airplanes. The ceiling above the center aisle is gently curved rather than the typical rounded space conforming to the fuselage, giving a sensation of spaciousness. There are also illuminated handrails.
The model’s biggest attraction for airlines, however, is its economical performance. It turns around in a half hour, uses significantly less fuel than other airplanes in its category and has lower landing fees, adding up to a 5 percent advantage in overall operating costs.
“It lowers our maintenance costs by 50 percent, our fuel burn by 20 percent and, if we had an all-717 fleet, we would save $65 million this year,” said Joe Leonard, CEO at AirTran.
The carrier has placed 50 firm orders and has options on another 50 717s. It took delivery of the first 717s in September.
Boeing is banking on a greater number of direct flights replacing the hub-and-spoke model, which requires smaller airplanes. Boeing has said it delivered 12 717s last year and expects to deliver 33 717s this year.
