Boeing Leans Toward New 737, Not a Re-Engine:

Boeing is leaning toward a new airplane to replace the 737 rather than proceeding with a re-engining program, an aerospace analyst wrote in a report issued May 5, 2010.

Richard Safran of the boutique Buckingham Research came away from Boeing Capital Corp’s annual investor’s update with an analysis that is a potentially paradigm-shifting conclusion that Boeing will forget about the widely-assumed plan to re-engine the 737 to meet an expected decision by Airbus to re-engine the A320 family–itself a decision largely driven by competition from Bombardier’s CSeries.

Safran’s report also cites “channel checks” with unidentified airlines, lessors and bankers to reach his conclusion that Boeing is likely to proceed with a new airplane. We know from our own conversations that key Boeing customers want a new airplane rather than a re-engined aircraft, so Safran’s report is consistent with what we are hearing (or vice versa, depending on your viewpoint).

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