By Tim Hepher PRAGUE (Reuters) -Executives from Boeing and Airbus dampened speculation of imminent decisions to replace their best-selling narrowbody models, telling a major audience of investors that it would take time to achieve the required jump in performance. The Wall Street Journal reported last Monday that Boeing was in the early stages of developing […]
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Boeing, Airbus dismiss talk of imminent new jet designs
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By Tim Hepher
PRAGUE (Reuters) -Executives from Boeing and Airbus dampened speculation of imminent decisions to replace their best-selling narrowbody models, telling a major audience of investors that it would take time to achieve the required jump in performance.
The Wall Street Journal reported last Monday that Boeing was in the early stages of developing a 737 successor. But marketing chief Darren Hulst told the International Society of Transport Aircraft Trading that a launch is “some way off” while a senior Airbus executive said it would “take a bit of time” to achieve the efficiency gains needed to attract the market.
The executives were speaking in separate responses to questions on stage during an ISTAT event in Prague on Monday.
The world’s dominant planemakers have faced record demand for narrowbody models like the 737 and its European competitor, the A320 family. Both were developed decades ago but were refreshed with new engines in the middle of last decade.
BOEING ‘NOT CLOSE TO LAUNCHING’ NEW PLANE
The question of when they will launch the next phase of their epic rivalry by introducing an all-new design is one of the main dilemmas facing the aerospace industry, though most analysts agree a launch is unlikely before later this decade.
Earlier this year, Boeing CEO Kelly Ortberg met Rolls-Royce to discuss a new engine, according to the WSJ report.
“We are never not looking at new technology but we are also not close to launching a new airplane,” Hulst, Boeing’s vice president for commercial marketing, told the ISTAT conference.
An aircraft launch is the stage at which a manufacturer begins development of a specific product and seeks new buyers.
In a note to staff last week, Boeing CEO Kelly Ortberg reiterated any new plane would depend on the market, technology and the company itself being ready, FlightGlobal reported.
Boeing is saddled with some $50 billion of debt following a safety crisis involving its best-selling 737 MAX model.
It meanwhile has four projects awaiting certification: two variants of the MAX and the larger 777-9 passenger jet as well as its sister freight model, collectively known as the 777X.
Bloomberg reported last week that the 777X faced a new delay in certification to 2027, bringing cumulative delays to seven years.
Hulst said bringing completing pending projects was the main priority before a new model, but did not comment on 777X timing.
AIRBUS SAYS EFFICIENCY GOAL WILL TAKE TIME
Airbus, which is outselling Boeing, particularly with the larger versions of the A320 family, has expressed interest in radical new engine technology.
Airbus Head of Trading and Asset Management Francois Collet told ISTAT any new plane would need to deliver a 25 to 30% jump in efficiency, something that would take “a little bit of time”.
(Reporting by Tim Hepher; Editing by Emelia Sithole-Matarise)