A320neo may force 737 decision by June: Morgan Stanley

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A research note issued by Morgan Stanley today on the back of yesterday's 2010 Boeing earnings announcement says it believes orders for Airbus A320neo aircraft will force Boeing to reveal plans for a new narrowbody by June.

The note says the US financial services firm believes that Airbus will have secured orders for between 500-1,000 A320neos by the Paris Air Show in June. This, it adds, could force Boeing to accelerate its narrowbody plans.

"We believe [Boeing] could announce a new narrowbody by Paris Air Show; re-engining makes less sense, in our view. Crucially, management discussed a new plane by 2019+ however we believe these sizable Airbus' new orders changes the game and could cause [Boeing] to accelerate plans."

The Seattle airframer told analysts yesterday that it hopes to solidify its plans by the end of 2011 with entry into service slated for 2019 or 2020.