Interest in 7E7 is growing, Boeing exec says

  • Dow Jones Newswire
  • Wednesday, June 16, 2004 9:00pm
  • Business

LONDON – The head of Boeing Co.’s 7E7 program Wednesday said the airplane manufacturer is in detailed talks to sell its new fuel-efficient passenger jet to more than 30 airlines.

Mike Bair, senior vice president of the 7E7 program for Boeing Commercial Airplanes, said the talks could amount to more than 600 orders.

He said he’s optimistic that about 500 orders could be received by the time of the 7E7’s first scheduled flight in the late summer 2007.

The midsized 7E7 Dreamliner is due to go into service with airlines in 2008.

Boeing says the plane will use 20 percent less fuel than existing, similar-sized aircraft through more efficient engines and increased use of lighter composite materials.

The 7E7 has a list price of about $120 million, but airlines regularly negotiate discounts.

All Nippon Airways Co. Ltd. and Air New Zealand Ltd. have already signed agreements to buy 7E7s. Bair said U.S. airlines – many of which are struggling financially – aren’t actively considering buying 7E7s.

So far, no European carriers have indicated they plan to order the planes, but Boeing Commercial Airplane’s head salesman in Europe, Marlin Dailey, said he was confident British carriers will buy.

Dailey said Boeing is “working very closely” with 10 or 12 European airlines. “There’s no doubt we will be bringing a European launch customer sometime this year,” he said.

Boeing is also talking to Middle East-based carriers, Bair said.

Shares of Boeing stock closed Wednesday at $49.90, up 65 cents, or 1.3 percent, on the New York Stock Exchange.

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