737 decision may slip to 2011: Credit Suisse

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Boeing's decision whether to launch an all-new aircraft to replace the 737, long promised by the end of this year, may slip into 2011, warns Credit Suisse aerospace analyst Robert Spingarn,

Spingarn, who on 15 June met Boeing chief executive Jim McNerney and Shep Hill, president of Boeing International and senior vice-president of Business Development & Strategy, concludes that the timeline could move to the right.

"Boeing is now receiving more of a mixed response from customers than it did initially as airlines fully evaluate the provisions of a re-engine," says Spingarn in his market report.

 
 © Tim Bicheno-Brown/Flightglobal
Will Boeing offer a re-engined 737 or an all new aircraft?

"Further, Boeing is concerned that a re-engining programme could end up being more costly due to design challenges and potentially jeopardise the 737 backlog. While a re-engine decision is not expected until year-end, we believe a decision could be delayed until early 2011 as Boeing continues discussions to fully understand what they need and are willing to pay for."

Spingarn concludes that Boeing will proceed with an all-new aircraft rather than a re-engine and believes that the design will be optimised for the 150- to 220-seat market.