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That was, I think, a poor decision (driven in no small part by Southwest and American of course).
Sure, it would have a ~3 year lag on the A320neo, but a clean sheet new narrow body in lieu of the 737MAX could have been exactly the 140-210 passenger, 4-5K nm 757 replacement everyone now clamors for.
Think about it, they have only 40% of the future share of the 150 seat area, and almost nothing of the 180-220 seat area (without the range of the 787). Nowadays with the 737MAX, the "Middle of the Market" is too small because they'd need to build a second plane where really they should have built a new plane to cover both markets and replace both the 737 and 757.
It's a shame the executives didn't have the vision back in 2011.
/backseat management