Boeing offers latest plan for 747 upgrade

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By Bradley Perrett, European aerospace & defence correspondent

SINGAPORE, Feb 26 (Reuters) - Boeing Co (BA) on Tuesday launched its latest
attempt to revive flagging sales of the 747 wide-body airliner, offering a
new version of the jumbo jet that would fly further and make less noise.

"Based on increasing customer interest, Boeing is developing this new family
of 747 airplanes and is now offering them to airline customers," Boeing said
in a statement issued at the Singapore air show.

"The 747-400XQLR could enter service in early 2004, depending on customer
demand."

Boeing developed the 747 in the late 1960s, upgraded it in the late 1980s
and then watched its sales slow in the late 1990s as airlines turned to
smaller aircraft that could match its long range.


Beaten at the top end of the market by the 555-seat A380 superjumbo being
developed by Europe's Airbus SAS (EAD)(EAD), Boeing has proposed a
succession of progressively less radical make-overs of the 416-seat 747.

On Tuesday it said it was now offering it with more fuel capacity and
refined, quieter engines from General Electric Co (GE).

The 747 is already the fastest subsonic airliner and the new version would
be a little faster again, Boeing said.

In a teleconference with reporters in the United States, Boeing said it
plans to deliver its first 747-400XQLR in March 2004, assuming it can book
its first order by June 2002.

"We are not in a position to launch the airplane," said 747 brand manager
Bill Droppleman. "We are offering the airplane."

ROLLS-ROYCE OFFER

British aero-engine company Rolls-Royce Plc (RR) said it wanted to supply an
advanced new engine for the 747-400XQLR that would be even quieter and would
use less fuel, lowering costs and further extending the plane's range.

"We have with the Trent 600 the only modern engine in that thrust class
(required by the 747-400XQLR)," chief operating officer John Cheffins told
reporters in Singapore. "We are offering it to Boeing and they are very
interested."

Boeing is also discussing new, quieter engines with United Technologies Corp
(UTX) unit Pratt & Whitney, Droppleman said in the teleconference.

"We are having discussions with both of them. We're not near as far along
with either," he said. "GE has a package we understand."

None of the companies involved issued financial details, but each is
proposing relatively low-cost developments of current products.

Reducing the 747's noise would be no mere publicity measure for Boeing.
Pressured by residents near airports and their politicians, most airlines
are extremely keen to minimise noise and will pay more for aircraft that
cause less bother.

The 747, originally considered quiet, has been left behind by by newer
planes that make much less noise on take off and landing. It is now regarded
as one of the noisiest Western airliners.

747 COMMITMENT

Some analysts have suspected that Boeing could soon close its 747 production
line because of the weak sales and the repeated failure of earlier proposed
improvements to excite airlines.

Such doubts about a plane's future can become self-fulfilling prophecies
because potential customers worry the resale values of a particular model
will depreciate if it goes out of production.

At the Singapore air show, Boeing's senior vice president for sales, Larry
Dickenson, stressed the company's commitment to the model.

After detailing the new version's potential, he said: "I'd also like to make
one more promise today -- that we will stand by the 747 family."

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