Boeing Co. said Monday it will likely make a decision on whether to re-engine the narrow-body 737 or build a whole new small airplane over the next several months.
Boeing BA +0.05% has been under growing pressure to make a decision after EADSFR:EAD -0.72% unit Airbus decided to offer a new engine for its A320 aircraft, which has been winning orders.
While some may think Boeing is “dithering” over the decision, the firm is working with the market to understand what it needs, said Jim Albaugh, president and CEO of Boeing Commercial Airplanes, at a press briefing at the Paris Air Show.
“We don’t want to be rushed” in making a decision, he said, explaining that Boeing has two teams studying both options.
“There is no question that doing a new airplane is more costly and there is more risk, but there is great reward as well,” Albaugh said, noting that Boeing’s customers would prefer the firm to go for a new airplane.
Through improvements in the aerodynamics and engines, Boeing says it can potentially build a new small airplane that’s 20% more fuel efficient than its predecessor.
Boeing executives played down suggestions that they are under growing pressure to make a decision on what to do with their small airplane strategy.
“We‘re not panicked about the [Airbus] Neo,“ said Mike Bair, vice president of advanced 737 product development.
“There’s no need for an artificial deadline...this could progress for a while,” he said. “But until we’ve sold something, we can always do something different.”
Boeing acknowledged that some capable manufacturers are entering the marketplace, including Brazil’s Embraer, China’s COMAC and Canada’s Bombardier.
“We’re taking them all very seriously. I’m not sure all of them will be successful,” he said, adding that the Chinese will “eventually build a very good airplane.”
Bombardier has been developing the C-series program, which will put the Canadian firm in more direct competition with the A320 and the 737.
“It appears as though the C-series is competing at 130 seats. We intend on competing at 125 seats upwards and we’ll defend that space vigorously,” said Nicole Piasecki, vice president of business development and strategic integration for Boeing Commercial Airplanes.
Boeing BA +0.05% has been under growing pressure to make a decision after EADSFR:EAD -0.72% unit Airbus decided to offer a new engine for its A320 aircraft, which has been winning orders.
While some may think Boeing is “dithering” over the decision, the firm is working with the market to understand what it needs, said Jim Albaugh, president and CEO of Boeing Commercial Airplanes, at a press briefing at the Paris Air Show.
“We don’t want to be rushed” in making a decision, he said, explaining that Boeing has two teams studying both options.
“There is no question that doing a new airplane is more costly and there is more risk, but there is great reward as well,” Albaugh said, noting that Boeing’s customers would prefer the firm to go for a new airplane.
Through improvements in the aerodynamics and engines, Boeing says it can potentially build a new small airplane that’s 20% more fuel efficient than its predecessor.
Boeing executives played down suggestions that they are under growing pressure to make a decision on what to do with their small airplane strategy.
“We‘re not panicked about the [Airbus] Neo,“ said Mike Bair, vice president of advanced 737 product development.
Boeing acknowledged that some capable manufacturers are entering the marketplace, including Brazil’s Embraer, China’s COMAC and Canada’s Bombardier.
“We’re taking them all very seriously. I’m not sure all of them will be successful,” he said, adding that the Chinese will “eventually build a very good airplane.”
Bombardier has been developing the C-series program, which will put the Canadian firm in more direct competition with the A320 and the 737.
“It appears as though the C-series is competing at 130 seats. We intend on competing at 125 seats upwards and we’ll defend that space vigorously,” said Nicole Piasecki, vice president of business development and strategic integration for Boeing Commercial Airplanes.
