Bernstein: Boeing to re-engine 737

By Geoffrey Thomas | June 3, 2011

Boeing 737-900ER. Photo: Courtesy, Boeing.

New York-based Bernstein Research said in a recent report that Boeing will be forced to re-engine the 737. It said that options for making incremental improvements and reducing the price, which was seriously considered through 2010, are no longer viable.

Bernstein said it argued strongly against re-engining through 2009, but with Airbus moving ahead with the A320neo, Boeing’s hand has been forced. “Boeing has stressed its bias toward doing an all-new aircraft for delivery in 2019-20 for the last six months, but we still believe that Boeing will ultimately re-engine the 737,” the report stated. Bernstein noted that Boeing has argued that the A320neo is just "catching up" with the 737, a claim which has some validity (ATW Daily News, March 30, 2011).

The research group believes that the technology does not yet exist to support a compelling case for an all-new aircraft and that waiting four or so years for it to possibly emerge is a risky call. “We do not believe that Boeing can confidently project technology breaks that will enable it to deliver a compelling all-new aircraft that justifies the investment,” it stated.

Bernstein is concerned that Boeing believes it has plenty of time to make the decision: “We do not believe this is the case, despite the long backlog for the 737. Airlines want answers. And if Boeing were to re-engine, it should act soon.”

The research group broadly argues that to gain the maximum customer base and returns, the re-engine needs have an EIS of 2014/15, not late this decade when an all-new type would make more sense.

Discuss this news 11

02 Jun21:15

what about a light weight

By Anonymous

what about a light weight composite b737-950 with 250 seats , a nice light fuel efficient aircract.

02 Jun22:45

If Boeing decides to

By John

If Boeing decides to re-engine that 40 year old dinosaur, it is big mistake. That airplane needs to be replaced with new technology. It has a tiny, extremely noisy, and very old flight deck. The cargo doors open in eating up valuable cargo space. But just like most US companies, if Boeing is given the choice whether to build a great advanced new airplane or cutting a few bucks out of production, I know that we will not be seeing a new airplane very soon.

03 Jun02:48

An entirely new plane will be

By Anonymous

An entirely new plane will be viable once Boeing has the 787in service for a few years. They need to let the new technology spend time in the industry, before the invest more money on another composite aircraft. A composite 737 would be great for Boeing and the industry. They just need to see what adjustments our needed once the industry gets ahold of it.

03 Jun06:39

I think Boeing have reasons

By Montnoveau

I think Boeing have reasons to be concerned. After all, todays 737 is an updated 1967-vintage aircraft, which wasn't state-of-art even in 1967...

03 Jun13:10

I do not believe there is

By Anonymous

I do not believe there is even 1 part on a B737-700 that is common to a B737-100
the skins, frames, landing gear, brakes, engines, avionics, hydraulics and air conditioning have all been extensively updated and the wing is an updated airfoil. The current B737 is a modern aircraft

03 Jun20:42

Last year I did a more

By keesje

Last year I did a more radical $4 billion 737 upgrade, including updated cockpit section

http://i191.photobucket.com/albums/z160/keesje_pics/Boeing737-900NGXfron...

I count Boeing buy some time for a successor in say.. 2025? There is a considerable chance in 2025 there will be new engine technology, that won't be there in 2019.

05 Jun14:34

I've read that Boeing may

By Anonymous

I've read that Boeing may only be waiting until Airbus reaches the point of no return on the A320neo before launching a new 7X7, which Boeing believes will be so superior to the A320neo that Airbus will have an obsolete airplane they can’t back out of.

http://www.glgroup.com/News/Paris-Air-Show-2011--Boeing-outlook-54217.html

05 Jun22:23

What was the purpose of your

By terri

What was the purpose of your upgrade? I mean, was it just an graphical "what-if" or is your design a part of a business fleet?

07 Jun09:19

The latest generation of the

By Anonymous

The latest generation of the 737 isn't a "dinosaur" by any means - I think you're referring to the original 737 which came out in the 60's. The 737NG is actually quite comfortable and quiet, and its flight deck is just as modern as the 777's. Considering a new aircraft wouldn't be ready for another 10 years or so, re-engining is probably the best way to go for now.

07 Jun10:07

After a lot of grief, the

By Jay Beaumont

After a lot of grief, the current 737 production line is a well-oiled machine that turns out 30 or 35 planes per month. It wasn't easy getting there. I'm sure there's much trepidation about committing to build a new production line to do the same with a new model. The company would be ruined if it encountered snafus like the 787 or A380 ran into.

Amazing to think that back in the 1940s they made 16 B17s every day.

21 Jul16:31

You would believe wrong... In

By Anonymous

You would believe wrong... In the flight deck alone there are several cut- outs and panels that would fit nicely in the 737-200... Updated yes, thoroughly modern - no...