Albaugh: Boeing could launch 737 re-engined jet this fall

The Boeing Co. expects to begin offering its re-engined 737 aircraft as early as this fall, said the president of the company’s commercial airplane division on Wednesday.

Boeing essentially launched the aircraft Wednesday with an order from American Airlines. However, the company’s board hasn’t signed off of the upgraded aircraft.

At a press conference Wednesday morning, Jim Albaugh said the company plans to complete a rough design of that aircraft in the next few weeks. Boeing’s board will meet next month and will vote on going forward with the re-engined 737. And Boeing hopes to launch the updated 737 this fall.

Boeing will begin deliveries of the re-engined 737 in 2018.

Boeing, which has been debating the future of its 737 for more than a year, is going forward with the re-engined 737 because of concerns over the production system for a completely new aircraft, which likely would be mostly composite.

“The production system is not well understood,” Albaugh said.

A re-engined 737 is a win for Puget Sound region workers. The work will likely remain in the area, whereas work on a completely new single-aisle jet would be up for competition.

The order for Airbus A320s raises questions whether Airbus will need to look elsewhere to expand its single-aisle jet capacity. The company had considered putting an A330 line in Mobile, Ala., for the U.S. Air Force tanker. However, Airbus’ Tom Enders, who also appeared at the American’ press conference, downplayed talk of a new production line in the United States.

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