737RE? Forgettaboutit

In what is, perhaps, the clearest signal Boeing isn’t going to re-engine the 737, and that it will take on the Airbus A320NEO head-on with an upgraded model, take a look at the last line of the AerCap press release announcing the signing of a letter of intent to order the 737-800–the first new-airplane order from Boeing from this previously all-Airbus new order customer:

AMSTERDAM, Nov. 18, 2010 /PRNewswire-FirstCall/ — AerCap Holdings N.V. (“AerCap,” NYSE: AER) announced that yesterday it has signed a Letter of Intent with The Boeing Company covering the purchase of up to 15 737-800 aircraft, consisting of 10 firm aircraft and 5 purchase rights.

Klaus Heinemann, CEO of AerCap, commented: “We are extremely pleased to enter into a direct purchase arrangement with Boeing, while AerCap’s portfolio of lease assets already contains a large number of Boeing aircraft, this is the first time that AerCap will buy directly from the manufacturer. The 737-800 with its recently announced performance upgrade, its new cabin interior and the superb on wing performance of its CFM engines makes it a formidable competitor to any re-engine alternative.” (Emphasis added.)

7 Comments on “737RE? Forgettaboutit

  1. The recently announced performance upgrade where “recently” refers to 2008, right? We are talking about 2% here. I think you are reading too much into it.

    I agree with you on the headline, though 😉

    • Well, since the B-737NG series already enjoy a 2%-3% fuel burn advantage over their A-32X series counterparts, this additional 2%-3% reduction is very attractive.

    • What is remarkable here is that it took 40 years to figure out that streamlined anti-collision lights may yield a drag saving.

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