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Posted on 09/14/2006 7:15:43 AM PDT by Paleo Conservative
WASHINGTON, Sept 13 (Reuters) - Boeing Co. is weighing options for replacing its best-selling 737 and one scenario might include separate aircraft for two markets, the company's senior marketing official said on Wednesday.
The 737 family covers the 110- to 200-seat range and is the most popular commercial plane ever with more than 5,000 produced in nearly four decades. There have been several 737 upgrades, including a major overhaul in the early 1990s.
With airlines seeking variety in seating capacity and more fuel and operating efficiency, Boeing is studying how to meet expectations and continue to offer a workhorse for the short- and medium-haul market.
A decision is nearly two years off and production several years away but one option under study, said Boeing marketing vice president Randy Baseler, is dipping into the under 100-seat market dominated by regional jets and satisfying customers who want more than 200 seats at the same time.
Boeing currently does not manufacture a regional jet, a market dominated by Canada's Bombardier Inc and Brazil's Embraer SA . Boeing would also compete with any changes by Europe's Airbus , which now makes the A320 to compete with the 737.
A Boeing foray into the 100-seat market with the 717 aircraft ended in May. The plane was initially a product of McDonnell Douglas and was renamed after Boeing absorbed that company in 1997.
Baseler said Boeing first must determine whether it should replace the 737 -- one for one -- with another one-class single-aisle aircraft. He said the company is studying the 80 and 90-seat market and what regional jet manufacturers are planning for 100-seat aircraft.
"It could end up being it doesn't make any sense for us being in the 90 or 100-seat market," Baseler said.
But if Boeing goes that way, Baseler said it will have to have two models to also satisfy airlines that want more than 200 seats.
He said Boeing is also talking to engine makers about efficiency gains, especially since Boeing is banking that fuel saving designs using composite materials will continue to spur strong sales of the 787 Dreamliner, which is set to enter service in 2008. The three-member 787 family will seat between 210 and 330 passengers.
Separately, Baseler said orders through August had "exceeded expectations" and Boeing hopes to have one or two orders for its 747-8 passenger jet later this year. The cargo version of the more fuel-efficient and stretched upgrade of the company's biggest plane has already netted 30 orders so far, including 12 by Atlas Air Worldwide Holdings Inc. that was announced on Tuesday.
He also said the departure of Boeing's commercial airplane chief Alan Mulally to run Ford Motor Co. leaves a large personal void but the business is in capable hands. He said sales executives will probably have to work harder with certain customers with whom Mulally had strong relations.
"In general, I don't think that's going to have a high impact here because our sales executives are very close to the customers," Baseler said.
Mulally's replacement at the Seattle-based unit, Scott Carson, led Boeing's sales division and was a key player in the company's recent turnaround.
Southwest Airlines is gonna be ticked off!
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Boeing studies idea of two planes to replace 737
Boeing 368.5A & 368.5B?.........
Nice conversation but ... if it ain't broke .....
Aircraft aren't cars. They are maintained according to schedules based on hours of operation not based on parts malfunctioning.
It would be stupid for Boeing not to conduct studies now about a replacement for the 737 in a decade or so. If Boeing doesn't build a 737/A320 replacement, someone else will. Just look what happened to McDonnell Douglas with their DC-9/MD-80/MD-90 aircraft or their DC-10/MD-11.
It ain't broke, it's just outdated. The 737 will have to be replaced with a composites based aircraft. The immense success of the Dreamliner is proving that. The reduction in the complexity of building the fuselage will also mean more profit margin for these smaller aircraft.
The larger Dreamliner is being used to hone manufacturing methods, then they can be economically applied to the smaller aircraft. Boeing would be stupid not to have this conversation now.
The is nothing wrong with the 737, but that doesn't mean Boeing can't do even better with newer technologies, and since a completely new aircraft takes years to design, test, and ramp up a production site, it's wise for Boeing to be looking at their options now.
They may discover that simply upgrading the 737 again is the best route.
Exactly. Developing the 737 replacement... snooze you lose.
As far as development of the regional jet, it would probably depend on the market and the profit margin, wouldn't it?
Do they no longer build NEW 737's?
It would be stupid for Boeing not to conduct studies now about a replacement for the 737 in a decade or so. If Boeing doesn't build a 737/A320 replacement, someone else will.
I agree they should always be exploring designs and ideas for future products. More efficient engines, wing foils, etc, are natural modifications but not new designs or new aircraft, per se. Yet, the 737 fits its use quite well and I would continue to build it if it were up to me.
OK, and thanks.
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