Boeing 737 900er Price
LE BOURGET, France (MarketWatch) -- Boeing Co. doesn't expect a replacement for its bestselling 737 single-aisle aircraft to enter service for at least seven years, a top executive said Monday.
"The plane continues to produce excellent value...We're probably seven to eight years away from a replacement, but it will depend on technology and demand," said Scott Carson, chief executive of Boeing Commercial Airplanes, at the international air show being staged here on the outskirts of Paris.
The show is the industry's most closely watched event and runs through the week. Read airshow preview.
Carson said Boeing BA,
"The technology to deliver those changes is still a little way to come," said Carson. He stressed that the technologies being worked on by the main aeroengine manufacturers, which are General Electric Co. GE,
"If we do a 10% improvement only, then we have to do another airplane right after that," Carson said. He said there's no point in rushing out a 737 replacement if the engine technology is not there.
Carson said Boeing continues to press the engine makers on how quickly they can bring the new technologies to the market. "It's no longer good enough to simply put the best engines in our aircraft," he said, adding that manufacturers, suppliers and regulators must address the environmental issue together.
Analysts, however, say that both Boeing and European rival Airbus, owned by EADS (005730), are wary of launching a replacement for the 737 and the A320 for fear of cannibalizing sales of these aircraft, which are the bread and butter of the industry. Boeing has sold more than 1,480 737s since January 2005. Sales of single-aisle planes represent about 41% of today's market.
So Boeing is in no rush on a new single-aisle aircraft, particularly as the deadline to roll out its new midsize long-range 787 jet, dubbed the Dreamliner, looms. After the July 8 rollout, Boeing must meet a series of testing and production targets so it can make its first delivery in May. The stakes are high for the U.S. giant. It has garnered close to 600 orders for the twin-aisled Dreamliner, making it the fastest selling new plane in aviation history.
Asked whether Boeing would consider making two planes to replace the 737, including a smaller one to address the 100-seat market that's dominated by Embraer ERJ,
787 on schedule
Carson said the long-awaited 787 would make its first flight "when it's ready." He said Boeing was on track for that to happen in late August to early September.
"We had no surprises in the process of putting that plane together," he said. "The airplane is fitting together very well."
He acknowledged that Boeing still has work to do on the aircraft. The company recently said that a shortage of fasteners, used to hold the plane together, is an area being monitored.
Carson also stressed that the plane has "changed the footprint of aircraft manufacturing." The bulk of the aircraft is actually built by suppliers outside of the U.S. and then shipped to Everett, Wash., where the plane is being assembled.
Despite the incredible demand for the aircraft, Carson said Boeing has no intention of ramping up capacity.
"I think it's important for leaders to show restraint," he said. "The worst thing we could do to this industry is drop extra capacity.'
Carson acknowledged, however, that there may be a point when the company would consider lifting its production rates, but said that would only happen if suppliers were ready to meet the higher rhythm, and if there were significant demand.
Source: https://www.marketwatch.com/story/correct-boeing-exec-sees-no-737-replacement-for-7-years
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