The second day at the Aircraft Finance and Commercial Aviation Conference in Geneva, Switzerland, covered a lot of ground but the most interesting for our readers is the skepticism over the prospect of re-engining the Boeing 737 and Airbus A320 families.
Potential buyers are anything but convinced this is the way to go. They look at the unknown capital cost, the new costs associated with maintenance, inventory and other factors, and have yet to be convinced that the net-net fuel savings will be sufficiently large to offset the added costs.
It is clear Airbus, Boeing and the engine-makers have a lot of convincing to do. But that’s not all: Airbus and Boeing remain unconvinced this is the correct course to take.
Airbus’s Andy Shankland and Boeing’s Randy Tinseth told the conference, and expanded on their views with us, that there internal business cases have yet to be made, among other factors, that an RE program makes sense. Although Airbus’ John Leahy told the ISTAT conference last week that he would like to make an announcement at Farnborough, Airbus may not be ready by then.