Boeing Considering New Mid-Sized Jet

Boeing Considering New Mid-Sized Jet:

SEATTLE/LONDON (Reuters) – Boeing Co. BA.N is considering building a new, more efficient airliner to replace its slow-selling 757 and 767 models in what would be its first all-new program in a decade, people familiar with the plans said.

The company has not yet decided to launch the new aircraft, which could revamp the middle of its commercial jet line, but several industry sources said it was as likely to be built as the sonic cruiser, a faster jet Boeing has proposed over the past year.

Boeing rejected that claim, however, stressing that the sonic cruiser, which would soar higher than current airliners at just under the speed of sound with engines behind massive, rear-mounted, double-delta wings, took top priority.

The new mid-sized jet would open a new front in the battle with European rival Airbus SAS EAD.DE EAD.PA . While the sonic cruiser might make Airbuses seem slow, the new plane could also render them relatively inefficient.

In private talks airlines have shown interest in the 20-percent boost in speed the sonic cruiser could offer, but some also expressed demand for a modernized conventional jet seating 200 to 250 people with lower fuel burn, sources said.

“We fully expect (Boeing) to build a new airplane. What that airplane is, we are not sure yet,” said one industry source familiar with the company’s thinking. “Boeing will build a ‘green’ (more efficient) plane before the sonic cruiser.”
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SHARPENING THEIR PENCILS

Boeing’s engineers are working intensively on this project, which would be Boeing’s first all-new plane since the 350-seat 777 energized its wide-body sales in the 1990s, sources said.

“A lot of Boeing’s commercial aircraft range has fallen behind the state of the art. It increasingly believes it needs to do something about that,” one source said. “They see a 777-style aircraft as a good solution to the problem.”

Another alternative was an extensive overhaul of the 250-seat 767. Recent modest improvements to the 767 have failed to hold off the popular Airbus A330-200.

Boeing spokeswoman Lori Gunter said the manufacturer’s product design team always looked at a wide range of potential new aircraft, but denied any had overtaken the sonic cruiser.

“We always study everything, but the sonic cruiser is our primary product under development,” Gunter said.

NEW ENGINES POSSIBLE

A new aircraft might also require new turbofans from one or more of the world’s three main aero-engine manufacturers: General Electric Co. GE.N , United Technologies Corp. UTX.N unit Pratt & Whitney, and Rolls-Royce Plc RR.L .

All of those companies have recently developed engines that might be adapted but none has a completely modern power plant of just the right size for a 767.

Any conventional 757 and 767 replacement would also be sized close to the sonic cruiser, which could leave the company with undesirable competition within its own product line.

But several sources said that Boeing had to do something to fend off a strong challenge from Airbus, which has steadily gained market share with more modern jets offering a number of common features that reduce operating costs.

The fierce competition, including allegations of cutthroat pricing on both sides, has held down profits at both manufacturers.
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