Buckingham predicts Boeing will respond to A320neo with all-new narrowbody
By Geoffrey Thomas | January 13, 2011
New York-based Buckingham Research Group believes that Boeing will counter the Airbus A320neo with an all-new narrowbody design to be launched later this year or early 2012 for delivery in 2017/2018.
Airbus on Tuesday announced that Indian LCC IndiGo will be the launch customer for the A320neo, the re-engined version of the A320 with a planned 2016 EIS that aims to improve fuel efficiency by 15% (ATW Daily News, Jan. 12). In a client report, Buckingham aviation analyst Richard Safran said Boeing will not re-engine the 737. "We think that the technology for a new aircraft with a 25% direct operating cost improvement could be available to support service entry in 2017/2018," he noted. "That's a change from our prior view, which was that [Boeing] would launch a narrowbody replacement in 2014 with a 2019/2020 service entry target."
He argued that with sustained higher fuel prices likely in the future, there will be demand for a more fuel efficient aircraft than any of the new market entrants, including the A320neo, can offer. Boeing will "need to respond to the threat of share loss posed by new entrants in the market," the Buckingham report stated, adding that "neither a re-engined 737NG nor A320neo offers operators a sufficient operating cost improvement to justify the price premium."
Buckingham posited that 737NG production rates could go above the current guidance of 38 per month: "We think Boeing will continue to raise production rates (possibly beyond 42 a month) in an effort to clear out the 737 backlog in preparation for the narrowbody replacement." Boeing has 2,186 unfilled 737NG orders, equating to about five years of production.
The research firm suggested Boeing is looking at two strategy options for an all-new narrowbody. The first option is to develop a family of two aircraft—a 125-180 seat aircraft to replace the 717 and 737-600/700/800, and a 180-240 seat, long range aircraft to replace the 757-200/300 and 737-900.
Another less likely option may be to continue production of the 737NG and develop a 180-240 seat aircraft to replace the 757-200/300 and 737-900, Buckingham noted, adding that any new aircraft would incorporate lessons learned from the 787 by lowering risk with less new technology and less outsourcing.
Buckingham claimed that with the demands of the A350, A400M and A380 programs, "Airbus [does not have] the manpower or funding at this time to launch a new narrowbody aircraft."
http://atwonline.com/eco-aviation/n...-will-respond-a320neo-all-new-narrowbody-0112
By Geoffrey Thomas | January 13, 2011
New York-based Buckingham Research Group believes that Boeing will counter the Airbus A320neo with an all-new narrowbody design to be launched later this year or early 2012 for delivery in 2017/2018.
Airbus on Tuesday announced that Indian LCC IndiGo will be the launch customer for the A320neo, the re-engined version of the A320 with a planned 2016 EIS that aims to improve fuel efficiency by 15% (ATW Daily News, Jan. 12). In a client report, Buckingham aviation analyst Richard Safran said Boeing will not re-engine the 737. "We think that the technology for a new aircraft with a 25% direct operating cost improvement could be available to support service entry in 2017/2018," he noted. "That's a change from our prior view, which was that [Boeing] would launch a narrowbody replacement in 2014 with a 2019/2020 service entry target."
He argued that with sustained higher fuel prices likely in the future, there will be demand for a more fuel efficient aircraft than any of the new market entrants, including the A320neo, can offer. Boeing will "need to respond to the threat of share loss posed by new entrants in the market," the Buckingham report stated, adding that "neither a re-engined 737NG nor A320neo offers operators a sufficient operating cost improvement to justify the price premium."
Buckingham posited that 737NG production rates could go above the current guidance of 38 per month: "We think Boeing will continue to raise production rates (possibly beyond 42 a month) in an effort to clear out the 737 backlog in preparation for the narrowbody replacement." Boeing has 2,186 unfilled 737NG orders, equating to about five years of production.
The research firm suggested Boeing is looking at two strategy options for an all-new narrowbody. The first option is to develop a family of two aircraft—a 125-180 seat aircraft to replace the 717 and 737-600/700/800, and a 180-240 seat, long range aircraft to replace the 757-200/300 and 737-900.
Another less likely option may be to continue production of the 737NG and develop a 180-240 seat aircraft to replace the 757-200/300 and 737-900, Buckingham noted, adding that any new aircraft would incorporate lessons learned from the 787 by lowering risk with less new technology and less outsourcing.
Buckingham claimed that with the demands of the A350, A400M and A380 programs, "Airbus [does not have] the manpower or funding at this time to launch a new narrowbody aircraft."
http://atwonline.com/eco-aviation/n...-will-respond-a320neo-all-new-narrowbody-0112