FARNBOROUGH, England – Boeing's foray into the 100-seat passenger jet market reached a milestone last week as the 717-200 completed its first flight from Long Beach, CA to the Arizona desert. It was much-needed good news for the manufacturer, which a week prior saw one of its rockets explode on its maiden voyage.

Boeing expects the 717-200 to become a replacement aircraft for the "thousands of aircraft now in service in the 100-seat market," meaning the DC-9s, and to meet future fleet expansion needs of airlines over the next 20 years. Boeing hopes the 717's similarities to the DC-9 will attract users of the latter as customers. Northwest Airlines was considered a key potential customer, but recent events have proved that to be doubtful.

The manufacturer is pinning major hopes on an aircraft with notoriously few customers in a market many have called risky at best. What's more, the market is expected to become more crowded if Airbus officially launches its own 100-seater, the A319MX at this year's Farnborough Air Show.

As we reported last week, Airbus announced it will end its partnering venture with Aviation Industrie of China in its joint development of a 100-seater, citing poor economic viability for the project. It did not rule out the continued development on its own of a shortened version of the Airbus A319, which many expect will be officially given the go-ahead tomorrow (see related story.

Boeing's 717 was originally launched in October 1995 as the MD-95. The only customer to place a significant order, for 50 airplanes and 50 options, is AirTran Airlines, which was then ValuJet. The first European customer for the airplane is Bavaria International Aircraft Company, based in Munich, Germany. Just as the Airbus product is a derivative of the A319, the 717 is based on the DC-9 airframe, but features new engines, new flight deck and other modern systems, new interior and enhanced performance. Boeing contends the 717 will be lighter than the new Airbus product, which would result in savings in airport landing fees for potential customers. The first delivery is scheduled for 1999.

The question in everyone's mind is whether the 100-seat market itself is a viable one, given the headstart, popularity and lower prices of the established regional jets already in the air. The regional jet order books are growing at a healthy rate, while the same can hardly be said for the 717. Boeing is also touting its 737-600 as another option in this seat category with 110 seats, further confusing the matter. Whether the order books reflect what the manufacturers are counting on remains to be seen.