Boeing starts working on 737 MAX replacement

Boeing is planning a new single-aisle airplane that would succeed the 737 MAX, according to people familiar with the matter, a long-term bid to recover business lost to rival Airbus during its series of safety and quality problems.

- Benjamin Katz & Drew Fitzgerald

Earlier this year, Chief Executive Kelly Ortberg met with officials from Rolls-Royce Holdings in the U.K., two of the people said, where they discussed a new engine for the aircraft. Ortberg appointed a new senior product chief in Boeing's commercial plane business, whose prior role was developing a new type of aircraft.

Boeing has also been designing the flight deck of a new narrow-body aircraft, according to a person familiar with the plans.

This new aircraft is in earlystage development and plans are still taking shape, some of the people said.

Boeing's plans represent a shift for the company, which had put some new aircraft development work on the back burner while it navigated multiple challenges. They are also a sign that the company is betting that a cutting-edge plane design could power its business for the next few decades.

Ortberg hasn't publicly detailed any plans for a 737 successor. He has consistently said that fixing Boeing's longrunning quality and manufacturing problems, and shoring up its balance sheet, are his priorities.

At a recent investor conference, Ortberg said the company is looking to finish up various projects, which "will also free up a lot of capital for us to focus on what's next."

Boeing said in a statement that it remains focused on its recovery plan, including delivering on a backlog of roughly 6,000 commercial airplanes and certifying already-announced aircraft models.

"Our team evaluates the market, advances key technologies, and improves our financial performance, so that we will be ready when the time is right to move forward with a new product," the company added.