Airbus won’t come out with a replacement for its A320 single aisle jet until 2025, the company said Tuesday.
Rainer Ohler, Airbus senior vice president, said that a new project costing about $13 billion would not be justified unless it could offer a 25 percent increase in overall performance. New technologies needed to achieve this target are not available, he told the Associated Press.
The Boeing Co. also is considering future of its single aisle jet family, the 737.
Both jet makers have mulled upgrading their single aisle jets by adding new engines. However, Boeing recently has been less enthusiastic about that option, saying that new engines won’t earn its 737 significant improvements.
Analyst Richard Aboulafia, with the Teal Group, thinks Airbus should go ahead with new engines for the A320. Aboulafia gives several reasons for his conclusion, including that the A320 has more room to be improved with new engines than does Boeing’s 737 and that Airbus is more at risk from emerging competitors.
Analyst Scott Hamilton, with Leeham Co., agrees with Aboulafia’s premise that Airbus should go forward with an A320 with new engines.
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