The end is nearing for the 757.

NEW YORK, Oct 16 (Reuters) – Continental Airlines said on Thursday that it will convert firm orders for some Boeing 757-300s to smaller 737-800s.

Chief Executive Gordon Bethune said in a conference call with analysts and reporters that the airline would take delivery on five 757-300s that Boeing Co. has already built and convert its remaining six orders to 737-800s.

The shift could push Boeing one step closer to shutting down the 757 line, which has just seven unfilled orders remaining besides Continental’s.

Boeing spokeswoman Sandy Angers said negotiations on Continental’s order book would be completed soon but declined further comment.

Boeing has delivered 1,035 narrow-body 757s since 1982 but the aircraft, touted as a highly fuel-efficient model in the 200-250 seat range, has been squeezed by the 737 as well as the A320 family built by rival Airbus SAS .

Chicago-based Boeing, which runs its jetliner unit from Seattle, is also proposing a new wide-body jet, dubbed 7E7, which would carry about the same number of passengers as the 757 but with added flight range and passenger comfort.

10/16/03 14:14 ET

Interesting development…