Launch of 737RE lifts Narrowbody Overhang
Posted by: Neelam Mathews July 21, 2011 Boeing bowed to market pressure and has announced it will re-engine its 737 as part of the American Airlines order, instead of launching a new clear sheet aircraft, says Wedbush Securities. “While surprised by the timing of this announcement, and with longer term concerns about the narrowbody strategy, we believe it is the best decision Boeing could make considering the current market dynamics,” add the analysts. Boeing confirmed that American Airlines has selected Boeing to provide 200 narrowbodies, with options for 100 more, to accelerate its single-aisle fleet replacement. The agreement includes 100 Next-Generation 737s, with options for an additional 40 airplanes. In addition, American Airlines has committed to order a variant of the 737 featuring new more fuel-...