Boeing Says Market Happy With Current 737

Boeing says incremental improvements it is introducing to its 737 Next Generation series are keeping the third generation of that airplane current, so it does not need to confront the issue of a re-engining effort or replacement program immediately. As expected, Airbus has announced plans to proceed with a re-engined A320. Boeing is introducing two upgrades to the NG series. A Sky Interior program of improved lighting, larger luggage bins and new window treatments is already in service with Malaysia Airlines in Asia, Jetairfly in Europe and Flydubai in the Middle East. United Airlines will take delivery of its first Sky Interior 737-800 in mid-December for the North American market. A United -800 is the flight test platform for the second half of Boeing’s 737NG series update, a performance improvement package offering a 2% operating efficiency gain through a combination of aerodynamics and better engine performance. Boeing and CFM International expect the CFM56-7BE engine, which offers a 1% fuel burn gain over current CFM56-7B powerplants, to be certified by mid-2011. “Well before the NEO is on the horizon, customers are going to be experiencing a 2% improvement at no charge,” says a Boeing official. Boeing’s total order count for the 737 since Lufthansa launched in February 1965 has reached 8,770 airplanes. It has delivered 6,578. “We are not discarding the idea of new engines, and we have the option of [designing] new airplanes,” the official said. “We will do what the market tells us. Right now, the market is telling us it is happy with the improvements we are offering on the airplane.” In recent discussions with investors, Boeing CEO James McNerney said the company may move faster on updates to its 777 program than the 737, although that decision depends largely on what rival Airbus does with its A350-1000, the largest of its new twin-engine series. The A350-1000 offers the most direct challenge to Boeing’s largest twin-engine jet, the 777-300ER.